On May 31, 4,502.9 BTC disappeared from DMM Bitcoin, a Japanese cryptocurrency exchange. The BTCs were removed from a DMM Bitcoin wallet, resulting in a loss of around 48.2B yen ($305M). DMM Bitcoin responded quickly, suspending new registrations and cryptocurrency withdrawals.
Despite the setback, DMM assures clients that their Bitcoin is safe and promises to replace the lost currency with help from security firms. DMM follows Japanese rules by keeping client funds separate—fiat money in separate accounts and digital assets scrupulously checked daily, primarily housed in secure, offline cold wallets.
However, the total customer holdings reported previously were equal to the lost amount, indicating that the intrusion may have reached even the cold wallets.
DMM Bitcoin vows to maintain a strict separation of client investments from company assets, using a trusted preservation system. However, the impact of the attack is still unknown.
