Popular Japanese crypto exchange DMM Bitcoin announces plans to compensate victims of last week’s hack, which led to the theft of approximately 4,503 BTC ($318.61 million).
In a statement today, the company disclosed plans to raise 55 billion Japanese yen ($352.3 million) to repay customers of the hack incident. According to the statement, DMM Bitcoin will raise the funds via loans and capital increases from “group companies.”
How DMM Bitcoin Plans to Raise the Funds
The exchange detailed how it plans to raise the funds. First, DMM Bitcoin said it had already borrowed 5 billion yen on June 3. Another 48 billion yen will be added to the amount in the form of a “capital increase” on June 7. Furthermore, the exchange will raise another 2 billion yen on June 10 through subordinated loans.
DMM Bitcoin will use the funds to purchase the nearly 4,503 BTC stolen from the exchange last week. Afterward, the company will repay the affected customers and use the remaining funds to “handle withdrawals.”
DMM Bitcoin Hack
For context, the hack occurred on May 31 at 1:30 PM local time. Following the attack, DMM Bitcoin restricted all spot purchases on its platform and delayed the withdrawal processing time of the Japanese yen.
Shortly after the attack, the exchange assured customers they would receive full compensation through the funds it plans to raise from group companies.
DMM Bitcoin is still investigating the cause of the hack. Following the conclusion of the investigation, the exchange would share more details on the incident.
Meanwhile, famous blockchain security firm Blocksec recently provided insight into the movement of the hacked funds. Blocksec’s data shows that the attackers first moved all 4,502.9 BTC to an external wallet, 1B6rJR…dZw7P.
The recipient address later transferred the total funds to 10 different wallets. Nine of the ten transactions contained 500 BTC each, while the last wallet received 2.89 BTC.
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