Coin Edition -
- DMM Bitcoin plans to raise $321M from its parent company to reimburse customers after a hack.
- Japanese regulators demanded a full report on the incident, vowing to improve security measures.
- The hack is ranked as the seventh-largest in the history of crypto thefts.
Japanese crypto exchange DMM Bitcoin has announced plans to raise 50 billion yen, approximately $321 million, to reimburse customers affected by a recent security breach. According to the recent update, the repayment funds will be sourced from group companies within the DMM.com conglomerate.
Notably, the security breach resulted in the loss of 4,503 Bitcoin at the time of the incident. Chainalysis, a firm specializing in blockchain analytics, has ranked this hack as the seventh-largest in the history of cryptocurrency thefts and the biggest since December 2022.
The aftermath of the security breach has prompted Japan’s Financial Services Agency to demand a thorough report from DMM Bitcoin on the incident’s causes and the proposed compensation plan for customers. Finance Minister Shunichi Suzuki has also expressed the government’s determination to enhance security measures at crypto exchanges to prevent future breaches.
To facilitate the recovery plan, DMM Bitcoin has already secured a loan of 5 billion yen and is preparing for a capital increase of 48 billion yen, alongside 2 billion yen in subordinated debt financing from its group companies.
DMM Bitcoin is a subsidiary of DMM.com, a diverse corporation founded in the late 1990s. The group reported revenues of about 348 billion yen in the year ending February. The group’s CEO, Keishi Kameyama, is known for his ventures in various industries, including entertainment, finance, renewable energy, and manufacturing.
While the internal fundraising efforts involve entities within the DMM.com Group, market analyst Yuya Hasegawa from Bitbank notes the complexity of assessing the situation from an external perspective. “It’s difficult for outsiders to pass judgment on the exchange’s plan to raise funds since it involves other companies,” Hasegawa remarked.
The post Japanese Crypto Exchange DMM Bitcoin Vows to Repay $321 Million Lost in Major Hack appeared first on Coin Edition.