The DMM Bitcoin exchange affected by the hack presented a compensation plan
Date: 2024-06-06 Author: Henry Casey Categories: BUSINESS
In May 2024, the Japanese cryptocurrency exchange DMM Bitcoin experienced a major hack that resulted in the theft of 4,502.9 BTC. In response to this attack, the exchange introduced a damages plan to compensate its users for the losses.
Raising Capital
The DMM Bitcoin team has announced its intention to return the stolen funds to users by purchasing an equivalent amount of bitcoins. To do this, the exchange plans to raise capital by buying bitcoins from its group of companies DMM.com. At the time of writing, the value of the stolen bitcoins is estimated at approximately $320 million.
One of the key aspects of the plan is to minimize market impact during Bitcoin purchases. The exchange assured that it will take all necessary measures to avoid significant price fluctuations associated with large purchases of cryptocurrency.
Completing the Process
The process of obtaining funding and purchasing bitcoins is planned to be completed by June 10. The exchange promised to immediately inform the public of any new details related to the recovery of stolen funds.
Representatives of DMM Bitcoin apologized to their clients for the incident and stated that they were continuing to investigate the reasons for the unauthorized access. The exchange expressed its determination to find out how the hack occurred and take measures to prevent similar incidents in the future.
Background of the Hacking
On May 31, 2024, DMM Bitcoin reported illegal access to its accounts in which the first cryptocurrency was stored. At the time of the announcement, the details of the hacker attack were not disclosed, but the exchange team assured that it was taking all necessary steps to protect the funds of its clients.
The redress plan presented by DMM Bitcoin is an important step towards restoring user trust and stabilizing the situation after the hack. The exchange strives to minimize the negative consequences for its customers and the market as a whole by continuing to investigate the incident and taking measures to strengthen security.
