DMM Bitcoin to raise $320m to pay back victims of recent hack

The Japanese crypto exchange outlined plans on its website to raise $320 million to purchase bitcoin and repay their hack’s victims. 

According to DMM Bitcoin’s website, all clients who held Bitcoin (BTC) during the hack will be guaranteed a refund from what is described as “group companies.” 

“As initially reported, we will guarantee all of the Bitcoin (BTC) held by customers by obtaining support from group companies to replace the amount of Bitcoin (BTC) that was leaked,” the website read.

DMM Bitcoin obtained a 5 billion yen loan on June 3 and is set to raise an additional 48 billion yen on June 7 through a “capital increase.” Details of this “increase” were not disclosed on the website. Additionally, the company plans to add 2 billion yen through subordinated loans on June 10, as stated in the announcement.

DMM Bitcoin stated that all these loans and fundraising efforts will not affect the overall pricing of the BTC market and they did not provide any further details on the hack but promised a full investigation.

“We are currently continuing our investigation into the cause of the unauthorized disclosure. We will provide a follow-up update as soon as details are known,” the website read.

Hack details

The exchange suffered a hack on May 31, losing more than 4,500 Bitcoin (BTC) worth around $308 million. That BTC would currently be worth $319 million. 

The company claimed all the BTC was “leaked” from customers’ wallets and promised a full reimbursement. The hacker split up the stolen bitcoin across 10 wallets in batches of 500 BTC. 

The company initially claimed that it could issue full refunds due to compliance with Japanese regulations, which require virtual asset service providers to manage corporate liquidity separately from user funds.