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Japanese crypto exchange hacked for $308 million

Crypto exchange DMM Bitcoin was hacked on Friday for over $300 million. This was one of history’s biggest crypto exchange hacks. DMM Bitcoin intends to compensate customers’ losses in full.

The Japanese crypto exchange DMM Bitcoin announced on Friday that it had been hacked. While the crypto industry is constantly experiencing scams, the DMM Bitcoin hack is one of the biggest in history. At the time of the incident, the exchange’s losses were close to 309 million dollars.

DMM Bitcoin noticed the hack on Friday afternoon local time. Criminals managed to steal 4503 bitcoins from the exchange. Whale Alert, which tracks large Bitcoin transactions, reported the move of funds on X.

So far, DMM Bitcoin has not explained how the attack was carried out. The exchange has temporarily stopped all cryptocurrency withdrawals and restricted trading on its platform. However, DMM Bitcoin intends to compensate its customers fully for the losses.

This hack does not affect crypto investors outside Japan. However, it is a good reminder of the risks related to crypto exchanges.

Even if client funds are eventually returned, there is a risk that you will not have access to your cryptos for days, weeks, or even months. For example, Mt. Gox customers are still waiting for refunds, even though more than ten years have passed since the incident.

One of the biggest crypto hacks in history

The hit on DMM Bitcoin was a massive hack. We haven’t seen losses of this magnitude in the crypto industry since 2022, even considering all kinds of hacks (exchanges, DeFi apps, token bridges, etc.). In terms of dollars, the hack of DMM Bitcoin is one of the largest ever seen on exchanges.

Below are significant hacks targeting crypto exchanges. Comparing them is difficult because Bitcoin’s price has changed so much. However, you can get some idea of the size of the losses of DMM Bitcoin.

  • Mt. Gox: In the largest Bitcoin hack in history, 850,000 bitcoins were stolen, worth $230 million at the time of the incident but almost $60 billion in today’s money. As many as 200,000 bitcoins were returned, but the exchange’s customers are still waiting for payments from the bankruptcy estate.
  • Bitfinex: Bitfinex was the leading crypto exchange in 2016. It lost 120,000 bitcoins in a hack, worth over 72 million at the time of the incident. In today’s money, the losses would be more than 8 billion dollars. The Bitfinex hackers were caught in 2022, and Netflix is ​​making a movie about it.
  • Coincheck: Japan’s largest hack occurred in January 2018, when over 520 million NEM tokens were stolen from the Coincheck exchange. At the time of the incident, the value of stolen coins was almost 500 million dollars.
  • KuCoin: The popular altcoin trading platform lost $150 million in 2020, mainly Ethereum and other ERC-20 tokens.

As you can see from the list above, hacks of this size ($300 million) are rare in crypto exchanges.

AboutBitcoin Team

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