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 ๐
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.
Leo Nomist emerges as a maestro harmonizing the roles of crypto analyst, tenacious researcher, and editorial virtuoso, creating an unparalleled symphony of insight. Amidst the intricate world of digital currencies, Leo’s perspectives resonate like finely tuned chords, capturing the attention of curious minds from diverse horizons. His talent for deciphering complex threads of crypto intricacies blends seamlessly with his editorial finesse, translating intricacy into a captivating composition of understanding. Guiding both intrepid adventurers and inquisitive novices, Leo’s insights serve as a compass for well-informed decision-making amidst the ever-shifting tides of cryptocurrencies. With the artistry of a linguistic virtuoso, they craft narratives that enrich the evolving tapestry of the crypto landscape.
