Japanese exchange DMM lost $305M in Bitcoin in private key hack

Centralized cryptocurrency exchange DMM lost more than $305 million worth of bitcoins (BTC) due to an attack on its servers on May 30. The exchange confirmed the hack on its website and said all user deposits will be “fully secured.”

The exchange has temporarily suspended withdrawals, opening new accounts, purchasing new positions and all new leveraged orders. However, previously placed orders will not be canceled.

Crypto users began discussing the attack on social media platforms on May 30 at 10:14 pm UTC, when analytics platform Whale Alert posted, “4,502 #BTC (308,948,771 USD) transferred from unknown wallet to unknown new wallet. The post linked to blockchain data showing that 4,502.9 BTC worth $305 million had been withdrawn from one wallet.

At the time, Well Alert listed the owner of the wallet as “unknown.” However, DMM later confirmed that it had actually lost 4,502 BTC in an attack on the website, which was likely the cause of that particular transaction.

“It has already taken measures to prevent unauthorized flows,” the exchange said. “Purchases a reasonable amount of BTC” to ensure all users are compensated. These funds will receive “support from our group companies”.

The team encouraged users to stay tuned for announcements as a new alert will be posted once all services resume.

DMM Exchange is owned by e-commerce conglomerate DMM Group. It started in January 2018. The company also owns a crypto mining company.

Hacking and scams continue to cause problems for crypto exchange users. In November, the Poloniex exchange lost more than $100 million when an attacker gained control of its private key. A similar attack on GDAC in April 2023 resulted in a loss of $14 million.

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