The Japanese based cryptocurrency exchange, DMM has fallen prey to a cyber attack, which has resulted in a loss of over $305 million in Bitcoin. The incident occurred on May 30, and saw the hackers breach the exchange’s server security to steal a whopping 4,502.9 Bitcoin. DMM has ensured its users that their deposits are fully secure, and is taking full responsibility for the stolen assets.
In light of this cyber attack, DMM has temporarily suspended several of its services. This includes withdrawals, new account creations, new spot buy orders, and all fresh leveraged orders. However, pre-existing limit orders placed by users will continue to stand unaffected by this development.
This cyber attack sparked quite a discussion among crypto-enthusiasts on social media. This chatter was sparked off by a post from the analytics platform, Whale Alert, which alerted users about a major Bitcoin transfer. The transfer, involving an amount of 4,502 Bitcoins had moved from an unidentified wallet to a new and unknown destination. At that time, the source of the Bitcoin was unknown, following which DMM came forward to disclose their loss.
DMM claims to have undertaken several measures to curb any unauthorised outflows in the future. It has also expressed intent to procure an equivalent amount of lost Bitcoin to provide its users with full compensation for their losses. DMM is expected to access the necessary funds through its group of companies.
The exchange has advised its users to remain vigilant for further updates on this issue. Once normal services are resumed, users will be notified via alerts. DMM exchange, owned by the e-commerce giant DMM Group, has been operational from January 2018. Notably, DMM Group also owns a crypto mining firm.
This incident is a stark reminder of the constant risk of cyber attacks on cryptocurrency exchanges. Similar breaches have occurred in the recent past. For instance, in November, Poloniex exchange lost over $100 million due to a similar hack. Prior to that, GDAC suffered a loss of $14 million from a cyber attack in April 2023.