Major hack prompts Japanese crypto exchange to secure $320M in funding for fund recovery.

DMM Bitcoin, a Japanese cryptocurrency exchange that recently fell victim to a hack worth $320 million in Bitcoin, is planning to raise 50 billion yen ($320 million) in order to compensate its affected users.
In a statement released on June 5, DMM Bitcoin outlined its strategy to recover the stolen customer funds by acquiring an equivalent amount of Bitcoin (BTC) from its sister company, DMM.com.
The company assured its users that it would take precautions to minimize any impact on the market as a result of these planned purchases.
DMM Bitcoin also stated that its investigation into the unauthorized outflow of 4,503 BTC on May 31 is still ongoing. The company deeply apologized for the incident and its impact on its customers, and it pledged to continue investigating the cause of the unauthorized outflow. Any new details that arise from the investigation will be promptly shared with the public.
To secure the necessary funds for compensation, DMM Bitcoin borrowed five billion yen ($32 million) on June 3. Additionally, it has scheduled a capital increase of 48 billion yen ($308 million) on June 7, and it plans to obtain an additional two billion yen ($12.8 million) through subordinated debt financing on June 10. These financial measures, supported by DMM.com, will ensure that there are sufficient funds to guarantee the Bitcoin holdings of the affected customers.
The DMM Bitcoin hack ranks as the eighth-largest cryptocurrency hack in history, placing it among the top 10 biggest crypto exchange hacks of all time. The largest hack to date occurred in March 2022, when the Ronin Network suffered a breach that resulted in the theft of $620 million. In response, Ronin implemented significant security upgrades, introduced $1 million bug bounties, and doubled the number of validator nodes to prevent such incidents from occurring again.