DMM Bitcoin Hack Sparks Regulatory Action | #hacking | #cybersecurity | #infosec | #comptia | #pentest | #hacker

DMM Bitcoin, a Japanese cryptocurrency exchange, is preparing to raise 50 billion yen ($321 million)  after a major hack that stole 4,503 Bitcoin according to reports from Bloomberg. It has led to a detailed investigation of the case and regulatory action following one of the biggest cyber risks in cryptocurrency history. 

Hack Details and Response

On May 31, DMM Bitcoin said that $320 million worth of digital assets, equivalent to 4,503 BTC, were stolen from them through an unauthorized outflow. The attack is now the seventh-largest crypto hack classified by Chainalysis. Hackers were also able to locate weaknesses in the exchange’s system and this led to a big loss. 

The stolen Bitcoins were immediately transferred through various wallets and some of the funds were mixed with the help of Tornado Cash, a mixing service well-known for its functions in increasing the anonymity of transactions. Tornado Cash cuts the link between the input and output addresses, whereby it becomes hard for the authorities to monitor the transactions. 

Fundraising and Compensation

In response to the hack, DMM Bitcoin provided an update on its resolution to raise fifty billion yen for the acquisition of Bitcoin, fully compensating the affected users. To underline this the exchange said that it will do these purchases in a non-disruptive way that does not significantly affect the Bitcoin market. 

The platform defines the error with the help of experts in the sphere of cybersecurity and the appropriate regulating authorities to understand the depth of the attack and take all the actions needed to prevent a similar problem in the future. 

The company has been ordered by Japan’s Financial Services Agency to explain the details of the hacking circumstance along with an account of compensation measures. Japan’s Finance Minister Shunichi Suzuki has also assured his firm commitment to offer support in increasing the security level of the country’s exchange platforms to avoid similar occurrences in the future. 

In the future steps following the hack, DMM Bitcoin is still to cooperate with the police and professionals specializing in computer crimes to recover the robbed money and apprehend the culprits. It will be important to see how the exchange ensures the users’ protection after this major security violation in the given context. 

Also Read: Are Your Holdings Safe? Crypto Hacks Increase 666% in May, $575 Million STOLEN


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