- Japanese Bitcoin exchange DMM Bitcoin last week lost $300 million in bitcoins in what appears to be a hack
- The cause of the loss has not yet been ascertained
- The hack is the biggest in around 18 months, with hackers favoring decentralized exchanges
The seventh largest hack in crypto history last week saw $300 million worth of bitcoins stolen from Japanese crypto exchange DMM Bitcoin. The company revealed over the weekend that it had detected “an unauthorized leak” from its digital wallet, which Chainalysis pointed out was the biggest hack since December 2022. DMM Bitcoin is still examining the incident and trying to find the source of the theft. Incidents such as this are becoming rarer, with hackers tending to target decentralized exchanges (DEXs) as centralized exchanges (CEX’s) have much better security than years ago.
Deposits Guaranteed
DMM Bitcoin announced on Saturday that it was undergoing unscheduled maintenance, which is always a worrying phrase for those in the crypto fraternity:
本日（午後0:00～午後2:00）週次メンテナンスを実施いたします。
メンテナンス中はトレード口座（取引画面）のログイン及びお取引等ができませんので、特にポジション管理等にご注意ください。
その他、注意事項等は、お知らせをご確認ください。https://t.co/6EIwpC8sjE— DMM Bitcoin（DMMビットコイン） (@DMM_Bitcoin) May 31, 2024
The exchange then published a blog post over the weekend in which it noted the loss of 4,502.9 BTC (approximately $301 million). The company reassured customers that “all of your Bitcoin (BTC) deposits will be fully guaranteed,” and added that several services were temporarily halted, including withdrawals, new accounts and purchases.
DMM Bitcoin added that the cause was still being investigated and an update would be offered once more was known. Data from security firm Blocksec shows that the thief divided up the stolen BTC across ten wallets in batches of 500 BTC.
Hacks of CEX’s have been reduced in recent years due to their increased security and the proliferation of DEX’s which are easier to manipulate. Bug bounty platform ImmuneFi last week disclosed that malicious actors in the crypto space are targeting decentralized projects over than their centralized counterparts as they form easier targets.
