Japanese cryptocurrency exchange loses $305 million in hacker attack

This is the third major cryptocurrency exchange hack in Japan in a decade.

DMM Bitcoin promises to cover losses and limit spot purchases.

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Japanese cryptocurrency exchange DMM Bitcoin has announced a devastating loss of $305 million as a result of a recent hack.

The breach resulted in 4,502.9 Bitcoin (BTC) being stolen from the platform.

Japanese cryptocurrency exchange hacked for $305 million

DMM Bitcoin disclosed the security breach in a blog post and said it had taken immediate steps to prevent further unauthorized transactions.

“Please rest assured that we will purchase Bitcoin equivalent to the outflow amount with the support of our group companies and guarantee the full amount,” the cryptocurrency exchange assured its users.

Following the incident, DMM Bitcoin temporarily restricted all spot purchases on its platform. In addition, the company warned that Japanese yen withdrawals may experience delays, urging users to remain patient in the wake of the hack.

Mati Greenspan, founder and CEO of Quantum Economics, noted that this was the third major cryptocurrency exchange hack in Japan in 10 years.

“The first was Mt. Gox in 2014, and then CoinCheck in 2028. You’d think by now people would have learned not to keep their crypto on these centralized exchanges. Both previous hacks effectively stopped cryptocurrency adoption in Japan for quite some time. I suspect this time will be no different, as people often learn the wrong lessons from these kinds of things,” Greenspan told BeInCrypto.

The incident highlights the persistent vulnerabilities within the cryptocurrency industry, even at prominent exchanges. Nevertheless, DMM Bitcoin’s swift response and commitment to recoup the losses reflects its dedication to maintaining customer trust and market stability.