Japanese crypto exchange DMM Bitcoin revealed on Friday that it has fallen victim to one of the most significant hacks in recent years, with over $300 million worth of Bitcoin stolen from its primary wallet. The breach occurred around 1:30 pm local time when DMM Bitcoin detected an unauthorized transfer of approximately 4,503 BTC—valued at about $308 million at the time. The company has yet to disclose the details of how the hack was executed but assured that an investigation is underway.
Despite the severity of the attack, DMM Bitcoin has committed to guaranteeing all customer BTC deposits. However, the exchange has suspended the purchase of spot trading orders, the initiation of leveraged trading positions, and the screening of new account openings. Additionally, crypto withdrawals have been halted temporarily, although withdrawals of Japanese Yen are still being processed, albeit with potential delays.
This attack stands out as the most substantial crypto-related exploit in recent memory, dwarfing other incidents this year and last. The breach is second only to the infamous 2018 hack of Coincheck, which resulted in the loss of over $550 million worth of XEM, a peer-to-peer cryptocurrency.
The crypto industry has faced a persistent wave of hacks and exploits, with billions lost to cybercriminals exploiting security vulnerabilities. While 2023 saw a marginal improvement over the previous year, which set a record for the highest amount lost to hacks, incidents like the DMM Bitcoin breach highlight the ongoing challenges in securing digital assets. According to TRM Labs, despite a few significant hacks, 2023 concluded with lower totals compared to the staggering $4 billion lost in 2022.
