Compensation Plan Announced by DMM Bitcoin After Hack
Recently, the Japanese cryptocurrency exchange DMM Bitcoin made a significant announcement regarding their plan to raise 320 million dollars in order to compensate users who suffered losses due to a hack. Here are all the key details you need to know.
The Japanese Exchange DMM Bitcoin’s Compensation Plan
– Following a hack that resulted in a loss of 320 million dollars in Bitcoin, DMM Bitcoin has revealed their intention to raise 50 billion yen (equivalent to 320 million dollars) to reimburse affected users.
– The exchange plans to recover the stolen funds by acquiring a matching amount of Bitcoin (BTC) from their group company, DMM.com.
– DMM Bitcoin assures users that they will try to minimize any market impact associated with these acquisitions.
– An investigation is still ongoing to understand the unauthorized outflow of 4,503 BTC on May 31.
– The company deeply apologizes for the situation and inconvenience caused to customers, promising to provide updates on the investigation’s progress.
Financing the Compensation
– To fund the reimbursement, DMM Bitcoin secured five billion yen (32 million dollars) on June 3.
– An additional 48 billion yen (308 million dollars) will be raised on June 7, followed by 2 billion yen (12.8 million dollars) through subordinated debt financing on June 10.
– This financial support from DMM.com will ensure the necessary funds to safeguard customers’ Bitcoin holdings.
Notable Hack Incidents in Cryptocurrency
– The incident involving DMM Bitcoin is considered the eighth largest hack in cryptocurrency history, joining the top ten largest cryptocurrency exchange breaches.
– The most significant hack to date remains the Ronin Network’s breach in March 2022, resulting in the theft of 620 million dollars.
– In response, Ronin has bolstered its security measures, increased validator nodes, and introduced a bug bounty program.
OKX Account Theft: Case of Deepfake and Vulnerability
– A client of the cryptocurrency exchange OKX recently fell victim to a 2 million dollar theft in cryptocurrencies, as reported by WuBlock.
– Scammers obtained the identity information of the client through a data breach on Telegram, accessing and taking control of the OKX account.
– Using a deepfake video of the victim, the scammers altered security settings, including email ID, phone number, and Google authenticator.
– Within 24 hours of the incident, over 2 million dollars worth of various cryptocurrencies were stolen from the user’s account.
Response and Actions Taken by OKX
– OKX has acknowledged the account theft and is supporting the victim in recovering access while pursuing legal action against the perpetrators.
– This adds to the series of attacks on OKX, including a past incident involving an OKX wallet and exploit on OKX Dex.
– Centralized cryptocurrency exchanges remain a prime target for attackers, who are now leveraging advanced tools like deepfake videos, raising ethical concerns.
Hot Take: Stay Informed and Secure 🔒
When dealing with cryptocurrencies, always ensure you stay informed about the latest security breaches and threats in the industry. Here are some key takeaways for you:
– Keep a close eye on your exchange accounts and set up additional security measures.
– Be cautious of phishing attempts and always verify the authenticity of communication related to your crypto assets.
– Consider using hardware wallets for added security when storing large amounts of cryptocurrency.
– Stay updated on security best practices and remain vigilant to safeguard your digital assets.
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