Japanese Crypto Exchange DMM Bitcoin to Raise $321 Million for Customer Compensation
Japanese crypto exchange DMM Bitcoin has revealed a plan to raise 50 billion yen ($321 million) to purchase Bitcoin for compensating users impacted by a recent hack.
Overview of DMM Bitcoin
- DMM Bitcoin operates under DMM.com, a company active in entertainment, technology, and renewable energy.
- The exchange is led by CEO Keishi Kameyama.
Japanese Regulators Call for Probe Into DMM Bitcoin Hack
On Wednesday, DMM Bitcoin shared its fundraising strategy, aiming to raise funds through a 48 billion yen capital increase and 2 billion yen in subordinated debt to acquire crypto assets.
- Regulators demand an investigation into the hack to ensure customer safety.
- Financial maneuver designed to prevent market impact while purchasing crypto.
Security Concerns and Regulatory Action
- Unauthorized outflow of 4,502.9 Bitcoin; seventh-largest crypto theft.
- Japan’s Financial Services Agency calls for a rigorous inquiry into the breach.
- Finance Minister emphasizes the government’s commitment to enhancing security.
Historical Perspective on Japanese Crypto Hacks
- Previous incidents like Mt. Gox collapse and CoinCheck breach highlight security vulnerabilities.
- CEO Mati Greenspan comments on the repeated security challenges in Japan’s crypto industry.
Resilience in the Crypto Sector
Despite ongoing challenges, the overall crypto sector demonstrates resilience and adaptation, with a decrease in losses related to crypto crimes compared to the previous year.
Improvements in Crypto Security
- Data from 2024 shows a 20% reduction in losses due to crypto-related crimes.
- May 2024 witnessed a 12% decrease in incidents compared to the previous year.
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