Japanese crypto exchange DMM hacked: $305 Million in Crypto Stolen

Japanese exchange DMM Bitcoin reported a hack on Friday last week, resulting in the theft of over $305 million worth of Bitcoin (BTC).

DMM Bitcoin, in a blog post, stated they detected an "unauthorized leak of Bitcoin (BTC) from our wallet." The exact nature of the hack remains unclear, with the exchange using the term "leak" instead of the more common "hack." However, security experts consider this a distinction with little difference.

The stolen amount, equivalent to 4,502.9 BTC, marks one of the biggest cryptocurrency thefts ever. Cybersecurity firm Chainalysis labeled it the "biggest hack since Dec 2022 and the 8th largest crypto hack ever" on social media.

Despite the significant loss, DMM Bitcoin assured customers that their Bitcoin deposits "will be fully guaranteed" with backing from group companies. The exchange did not provide a timeline for replacing these funds.

The hack has caused disruptions on the platform. Spot buys, where users can instantly purchase cryptocurrency, have been temporarily suspended. Additionally, delays are expected for customers withdrawing Japanese Yen (JPY).

DMM Bitcoin's incident follows a long history of cyberattacks on cryptocurrency exchanges. Mt. Gox, another Japanese exchange, famously collapsed in 2014 after losing over $400 million in Bitcoin. More recently, Coincheck, another Japanese exchange, suffered a $533 million theft in 2018.

According to De.Fi, a web3 security firm that tracks crypto thefts and scams, hackers stole around $2 billion in crypto across dozens of cyberattacks and thefts last year. Surprisingly, the figure represents the lowest loss since 2020.

As the investigation into the DMM Bitcoin hack unfolds, the incident is likely to fuel regulatory scrutiny over cryptocurrency exchanges worldwide. Authorities in Japan have already been tightening regulations following past hacks, and this latest breach could lead to even stricter oversight.