Crypto Exchange DMM Bitcoin Seeks $320 Million to Recover Funds Following Major Hack Attack

Crypto Exchange DMM Bitcoin Seeks $320 Million to Recover Funds Following Major Hack Attack

DMM Bitcoin, a cryptocurrency exchange operating in Japan, suffered from a major hack attack recently. However, the administrators of the firm promised the investors to return their funds in a bid to appease the investors. After undergoing the devastating cybersecurity incident, the firm managed to raise around $320 million to compensate its investors.

DDM Bitcoin to Raise 50 Billion Yen

The hackers stole around $320 million in cryptocurrencies from the platform. The funds were in the form of Bitcoin. The firm has now made plans to raise 50 billion yen to reimburse their clients.

To brief the public on the matter, the firm issued a statement on 5th June noting that the firm intends to make up for the losses by acquiring an equivalent amount in the form of the flagship token namely Bitcoin.

The Bitcoin funds are set to be released from the group firm namely DMM.com. The management of the exchange further notified the users that it would handle market impact using the planned purchasing strategy.

The firm further unveiled that the unauthorized outflow of funds on 31st May was around 4503 Bitcoins. In addition to offering a viable solution to the matter, DMM Bitcoin apologized for the accidental incident and noticed that it is conducting an in-depth investigation of the unfortunate event.

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Hacked Japanese Exchange Lends Funds to Compensate Investors

In a bid to take responsibility of the hack incident, DMM Bitcoin borrowed 5 billion yen or $32 million on 3rd June. Another installment of the fund valued in 48 billion yen or $308 million is set to take place on 7th June.

The final installment of the borrowed payments is scheduled to be sent using subordinated debt financing on 10th June estimated to be around 2 billion or $12.8 million. The aforementioned financial support and fund recovery process is processed on DMM.com.

The recovery funds will warrant Bitcoin holdings deposited by customers of the exchange platform over the years. The hack incident affecting DMM was listed as the top 10 and 8th largest hack incident in the history of the cryptocurrency sector of all time.

The first rank in this category is assigned to the Ronin Network attack of March 2022. This incident breached the network via validator nodes and led to the theft of $620 million in customer funds.

As a result, Ronin up-scaled its security measures and announced $1 million in rewards for white hat hackers to intercept or detect system vulnerabilities in advance.

Another report article reported hacked fund recovery by Axie Infinity developer Sky Mavis. The firm recently confirmed that the platform was able to recover Norwegian authorities have helped in recovering around $5.7 million from the Ronin Bridge attack of 2022.

Axie Infinity to Make Productive Use of Recovered Funds

The platform announced on 7th June that the central unit for economic and environmental crimes known as Økokrim has seized and returned $5.7 million in funds stolen from the Ronin Bridge attack.

The firm further noticed that the recovery was possible with the help of robust coordination at a legal, financial, and blockchain fronts and forensic expertise of Chainalysis.

The platform expressed gratitude to the Norwegian government and the FBI of the United States for their remarkable response and assistance in asset recovery and tracking down illegal actors.

The gaming platform further stated that the recovered funds will be dedicated to Axie Infinity treasury. But, a small portion of the funds will cover the expenses of the team that lent strong support in backing the recovery process.

The official statement reads that around 15% of the recovered assets will cover the incurred costs for the recovery team and 85% will be sent to Axie Infinity holdings. In addition to working with Axie Infinity, the law enforcement agents have frozen $40 million in the form of cryptocurrencies.

The company has asserted that fund recovery is a lengthy process and it will take time and a definite timetable for return is not available at present.

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