DMM Bitcoin, the largest cryptocurrency exchange in Japan, has made an official announcement that it will raise 50 billion Yen to purchase Bitcoin. This move comes as a response to the recent security breach, which resulted in the loss of 4,502.9 BTC worth approximately $300 million. Bloomberg reports that the exchange aims to compensate its customers for their losses through this $321 million Bitcoin purchase.
Following the security breach on June 3, DMM Bitcoin temporarily halted spot exchanges and initiated a thorough investigation. It was discovered that the hacker responsible for the theft had transferred the stolen Bitcoin to ten different wallet addresses, as reported by Lookonchain.
To address the situation, DMM Bitcoin has decided to invest funds in buying Bitcoin. The exchange is being cautious not to disrupt the BTC market with its substantial purchase of the leading cryptocurrency. In its statement on June 3, DMM Bitcoin expressed apologies to its customers and assured them that it would fully reimburse their losses. The massive purchase of BTC will be used to compensate customers for their lost BTC holdings.
The security breach and subsequent loss of significant amounts of BTC have made this incident the seventh largest crypto hack ever recorded. In response, Japan’s Financial Services Agency has instructed DMM Bitcoin to conduct a detailed investigation into the breach.
Crypto-related crimes have been on the rise recently, according to various sources. The Hong Kong police, for example, have observed a surge in counterfeit bank notes associated with crypto-related crimes over the past year. Furthermore, there have been multiple arrests of both small-scale traders/hackers and prominent experts on charges related to regulations and money laundering.
Meanwhile, the price of Bitcoin has experienced an upward movement in the past 24 hours, currently trading at $70,954. This increase further adds to DMM Bitcoin’s loss, which now amounts to $319 million.
In other crypto news today, the FDIC has revealed that 63 US banks are at risk of insolvency, with a total of $517 billion in unrealized losses.