The Japanese cryptocurrency exchange DMM Bitcoin recently announced that it will aim to raise 320 million dollars to compensate users after a significant hack.
DMM Bitcoin therefore aims to compensate users for their loss by raising equivalent funds. Let’s see all the details below.
Summary
The Japanese exchange DMM Bitcoin victim of a $320 million hack announces a compensation plan
As anticipated, DMM Bitcoin, a Japanese cryptocurrency exchange recently victim of a hack that led to the loss of 320 million dollars in Bitcoin, plans to raise 50 billion yen (320 million dollars) to compensate the users.
In a statement released on June 5, DMM Bitcoin explained that it will recover the stolen funds by procuring an equivalent amount of Bitcoin (BTC) from its group company, DMM.com.
The exchange assured users that it will seek to minimize the impact on the market with these purchases. The company also clarified that the investigation into the “unauthorized outflow” of 4,503 BTC on May 31 is still ongoing.
DMM Bitcoin has deeply apologized for the situation and the inconvenience caused to customers, promising to continue investigations to determine the cause of the incident and to update the public on any new developments.
To finance the compensation, DMM Bitcoin borrowed five billion yen (32 million dollars) on June 3.
Additional 48 billion yen (308 million dollars) will be raised on June 7 and another 2 billion yen (12.8 million dollars) through subordinated debt financing on June 10.
This financial support, coming from DMM.com, will guarantee the necessary funds to secure the customers’ Bitcoin holdings.
The DMM Bitcoin incident, classified as the eighth largest hack in the history of criptovalute, is among the top ten largest cryptocurrency exchange hacks of all time.
The largest remains the hack of the Ronin Network in March 2022, which exploited the network’s validator nodes, leading to the theft of 620 million dollars.
In response, Ronin has significantly updated its security measures, introduced a bug bounty of 1 million dollars, and doubled the number of validator nodes to prevent future attacks.
The $2 million hack in crypto from an OKX account: case of deepfake and vulnerability
Recently, a client of the cryptocurrency exchange OKX was also a victim of a theft of 2 million dollars in cryptocurrencies, according to WuBlock.
The scammers “acquired” the identity information of Lai Japanese Fang Chang through a data breach on Telegram.
Exploiting this information, they accessed Chang’s OKX account and took control of it through the “password dimenticata” option.
Assuming the identity of Chang, the scammers modified all his security settings, including the email ID, phone number, and Google authenticator settings, even using a deepfake video of the victim.
Within 24 hours of the user’s report, their account suffered a loss of over 2 million dollars in various cryptocurrencies.
OKX has acknowledged the theft of the account and is assisting the victim in recovering the account, in addition to having taken legal action against the aggressors.
This incident adds to other attacks suffered by OKX in the past, including a previous attack on an OKX wallet and an exploit on OKX Dex.
Centralized cryptocurrency exchanges continue to be a common target for attackers, who now also use advanced tools such as deepfake videos, raising ethical concerns about the use of intelligenza artificiale in the sector.
