As an experienced analyst in the crypto industry, I’m deeply concerned about the latest development involving DMM Bitcoin and their plan to raise $320 million to buy Bitcoins as compensation for their hacked customers. While I understand their intention to make things right, this move could potentially have significant market implications.
In their most recent announcement, DMM Bitcoin, the Japanese crypto exchange that was recently hacked, intends to acquire a massive 50 billion yen ($320 million) worth of Bitcoins as part of their reparation strategy. This initiative aims to make amends for the losses sustained by their customers during last week’s cyberattack.
DMM Bitcoin Plans Out BTC Purchase
On June 5, DMM Bitcoin announced its intentions to take necessary steps to prevent any impact on the Bitcoin market while emphasizing that the upcoming purchase would be premeditated. Additionally, the exchange disclosed plans to launch an investigation into the recent “unauthorized withdrawal” incident that transpired during the last week.
Based on the information provided, approximately 4,503 Bitcoins, equivalent to around $320 million at the present Bitcoin price of $70,879, were withdrawn from exchanges.
According to Chainalysis, a leading platform for tracking transactions on various blockchains, the latest cyberattack ranks as the seventh most significant cryptocurrency heist in history.
The Financial Services Agency of Japan has ordered DMM Bitcoin to give a comprehensive explanation of the cause of the security incident and to propose a plan for reimbursing impacted clients.
As a financial analyst, I can confirm that Finance Minister Shunichi Suzuki has reiterated the government’s intention to take action and prevent future security vulnerabilities in cryptocurrency exchanges.
Crypto Hackers Reign Again
In the rapidly growing world of cryptocurrencies, cyberattacks unfortunately remain a persistent issue. Even in countries known for their welcoming stance towards digital currencies, such as Japan, significant hacking incidents have occurred.
In 2014, the most significant incident involving Mt. Gox exchange occurred, leading to its bankruptcy filing after a theft that resulted in over $470 million in losses. Similarly, Coincheck, another Japanese cryptocurrency exchange, suffered a major breach in 2018 resulting in more than $500 million worth of losses.
As a researcher studying the developments at Mt. Gox, I can share that the Trustee has been meticulously working on the repayment plans and executed transactions totaling approximately $10 billion in Bitcoin (BTC) and Bitcoin Cash (BCH) over the past week. According to the current projections, Mt. Gox’s redistribution process is expected to be completed by around September 2024 without causing any significant impact on the future price trend of Bitcoin.
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2024-06-05 08:13