Japanese cryptocurrency trading platform DMM Bitcoin fell victim to a hack resulting in a massive loss of Bitcoin worth around $305 million on May 31st.

The exchange confirmed the attack and revealed that 4,502.9 bitcoins were drained from their systems. DMM Bitcoin has not provided additional details regarding the breach but stated that it is conducting an investigation and has implemented measures to avoid a recurrence of such an attack.

DMM Bitcoin Hacked

Following the incident, DMM Bitcoin stated that it had put measures in place to prevent any further unauthorized outflows of cryptocurrency from its platform, according to its official announcement posted on the exchanges website.

The company pledged to cover all Bitcoin deposits to reimburse customers completely and stated that it plans to acquire an equivalent amount of the lost BTC with the backing of its group companies.

Please be assured that we will procure the equivalent amount of BTC equivalent to the outflow with the support of the group companies and guarantee the full amount.

DMM Bitcoin said that it has implemented restrictions, halting all spot purchase transactions on its platform. The exchange also cautioned users that withdrawals involving the Japanese yen may experience significant delays compared to normal processing times.

Coincheck Hack

Back in 2020, another popular Japanese cryptocurrency exchange was hacked during which personal information and emails were reportedly compromised. The breach occurred between May 31st and June 1st, 2020, when a third party accessed Coinchecks domain registration service, altered domain information, and gained illegal access to some customer emails.

Coincheck was also hacked for $533 million, primarily consisting of NEM tokens in 2018. The breach was largely attributed to the exchanges inadequate security measures at the time. Instead of using offline cold wallets or secure multi-sig wallets as recommended by NEM, Coincheck stored most of its clients NEM in a single online hot wallet protected by just one private key.