Crypto exchange DMM Bitcoin Suffers $305M Hack

[OmegaStarScream]

For those who never heard of the exchange before, it's a Japanese one. The exchange suffered a 305M loss (all in bitcoin)[1] and said they guarantee to compensate all of their users. The article mentions the link to official blog post but it's leading nowhere for me.

[1] https://www.coindesk.com/business/2024/05/31/japanese-crypto-exchange-dmm-bitcoin-suffers-305m-hack/

[Rikafip]

Damn, that's shit load of bitcoin stolen. Afaik, all crypto exchanges operating in Japan are obliged to have reserves so in cases like this people don't lose the money, but still its just another reminder how dangerous is using exchanges as a storing place.

The article mentions the link to official blog post but it's leading nowhere for me.

I managed to open the link and I got "This page is not available in your area", among some other stuff written in Japanese.

[Potato Chips]

If anyone's interested, here's the machine translated blog post:

At approximately 13:26 on Friday, May 31, 2024, we detected an unauthorized leak of Bitcoin (BTC) from our wallet.

The details of the damage are still under investigation, but the following is what has been identified at this stage. In addition, although we have already taken measures to prevent the unauthorized leak, we have restricted the use of some services to ensure additional safety.

We deeply apologize for any inconvenience this may cause our customers.

■About the status of cryptocurrency leaks

It has been determined that the amount of Bitcoin (BTC) illegally leaked from our wallet is 4,502.9 BTC (equivalent to approximately 48.2 billion yen).

■About customer's deposited Bitcoin (BTC)

Please rest assured that we will procure the equivalent amount of BTC leaked with support from our group companies and guarantee the full amount of the entire amount of Bitcoin (BTC) deposited by our customers.

■About service usage restrictions

We have restricted the use of the following services.

・Review of new account opening
・Cryptocurrency withdrawal process
・Stop buying orders for spot trading (only selling orders accepted)
・Stop new open positions for leveraged trading (only settlement orders accepted)

*Limit orders for spot trading and leveraged trading that have already been placed will not be canceled.
*Withdrawals of Japanese yen may take longer than usual.

We will notify you separately when services will resume.

We deeply apologize for the inconvenience and concern this situation has caused our customers.

[Contact information for this matter]

・Customer support page
DMM Bitcoin Co., Ltd.: https://bitcoin.dmm.com/support

・Public relations office
E-MAIL: release-dmm@dmm.com

BTW, about the mentioned reserves, how do JPN exchanges typically have to put in? like 100% owed? was wondering if it could be enough to cover almost to all losses? in the blog though, they did mention they're gonna get some support from their group companies for refunds -- assuming the translation is correct since machine translations are susceptible to inaccuracies.

[YOSHIE]

Crypto exchange DMM Bitcoin Suffers $305M Hack

This is the second largest and worst case of Bitcoin theft that has ever occurred in Japan in history, as reported by the Coincheck exchange also experienced the same fate as that experienced by the DMM exchange.

Just hope that Bitcoin users who experienced the hacking disaster can receive their Bitcoins back, as the company said.

DMM exchange company also promised that all customer Bitcoin deposits will be fully secured as it will get an amount of BTC equivalent to that which was leaked with the support of the company group.

Hopefully, those words are true, if not the end.

[dkbit98]

For those who never heard of the exchange before, it's a Japanese one. The exchange suffered a 305M loss (all in bitcoin)[1] and said they guarantee to compensate all of their users. The article mentions the link to official blog post but it's leading nowhere for me.

How much money people need to lose to finally learn not to keep coins on centralized exchanges?  
I never heard about DMM exchange before and I can't find anything about it on CoinGecko or CoinMarketCap website.
Japan has a lot of stuff and services that are exclusive only for their region, DMM-Bitcoin can't work in different countries, so hackers must be locals from Japan.

[Learn Bitcoin]

How much money people need to lose to finally learn not to keep coins on centralized exchanges?  

To be honest, no matter how much others are losing by hacks, I will continue to use them until it happens to me.
Most of us (centralized exchange users) have that mindset. I don't want to be a hypocrite; I also use centralized exchanges. That is because I did not really know the bad side of them. Most of my local country mates do not know the difference between Binance and Electrum. They will prefer Binance over Electrum because it is easy to sell their Bitcoin there. This is an unfortunate but true fact.

I have been trolled on social media multiple times because I said not to use centralized exchanges to hold your funds. They said, These are multi-million dollar companies. They won't run away with our few thousand dollars. It's better you oil your own machine. If they get hacked later or lose their funds, should I be sad for them? What do you think?