DMM Bitcoin to raise over $300M for BTC buyback to compensate victims
Share link:In this post: DMM Bitcoin plans to raise more than $300 million to compensate its impacted users. Blockchain security firms are still speculating about the root cause of the exchange’s attack. Crypto analyst predicts that DMM Bitcoin’s planned BTC purchase would lift the market.Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or c
Recently hacked Japanese cryptocurrency exchange, DMM Bitcoin, has announced plans to raise over $300 million through several fundraising initiatives. DMM Bitcoin intends to use the funds to compensate users affected by the infamous 4,502 BTC hack (nearly $305 million) on the exchange.
Also Read: Crypto Exchange DMM Bitcoin Vows To Repay Users After $300M Hack
In a June 5 statement , the exchange said it secured a 5 billion yen ($32 million) loan on June 3 and plans to raise an additional 48 billion yen ($308 million) by June 7. Furthermore, DMM Bitcoin intends to obtain an extra 2 billion yen ($12.8 million) through subordinated loans on June 10.
The company said its planned BTC purchase would be done in a manner that does not significantly impact the market. It also revealed that its fundraising efforts are backed by support from its “group companies.” DMM Bitcoin is a subsidiary of DMM Financial, which is part of DMM Group, a conglomerate established in 1999.
DMM Bitcoin’s exploit ranks as 6th largest crypto hack
While information remains sparse about the cause of the May 31 breach, blockchain security firm, Beosin, suggested that DMM Bitcoin’s multi-sig private key might have been compromised or that the exchange wallet controller was a victim of an address spoofing scam.
Meanwhile, DMM Bitcoin said it was continuing its investigation into the breach and has promised to provide further details once the investigation is complete. Arkham Intelligence, a blockchain analytical platform, has offered a bounty to help identify the attackers.
DMM’s hack ranks among the largest cryptocurrency hacks in history, with blockchain security firm, CertiK, saying that it is the sixth-largest incident the industry has recorded in the last three years. During this period, the crypto space saw the Ronin Network hack of $620 million and a $400 million hacking incident involving the bankrupt FTX exchange.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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