Key Points
- DMM Bitcoin plans to cover losses from a $300 million theft with financial support from DMM Group.
- The crypto exchange has outlined a funding schedule, aiming to raise a total of $352.4 million by June 10.
Japanese cryptocurrency exchange, DMM Bitcoin, recently experienced a significant theft, losing over $300 million in Bitcoin.
The exchange has now shared its strategy for covering these losses.
Recovering from the Theft
The exchange confirmed that 4,502.9 Bitcoin (equivalent to $306 million) were stolen in an unauthorized fund outflow.
To reassure its users, DMM Bitcoin pledged to guarantee the full amount of their deposits by procuring an equivalent amount of Bitcoin.
Funding Plan
The exchange plans to secure funds with the assistance of its group company, DMM Group, a prominent electronic commerce and internet company.
As of June 3, DMM Bitcoin had borrowed 5 billion yen ($32 million).
They aim to increase their capital by 48 billion yen ($307.6 million) by June 7, and secure subordinated borrowing of 2 billion yen ($12.8 million) by June 10.
This would total to $352.4 million, which will be used to procure the same amount of Bitcoin.
The exchange has expressed its regret for the inconvenience and concern caused to its customers.
Crypto forensics firm Elliptic has labeled this theft as the eighth largest crypto theft of all time, and the largest since a $477 million hack that affected FTX in November 2022.
