BTC PULSE
No Result
View All Result
Play Now
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

Japan’s DMMBitcoin to Match Outflows After $308M Hack

by Dan K
May 31, 2024 - 10:02 pm
in Blockchain
DMMBitcoin promises full reimbursement after a $308M Bitcoin hack.

Hackers stole all customer Bitcoin deposited in a Japanese exchange, but the platform promised to reimburse all users in full after the incident.

Massive Crypto Heist Hits DMMBitcoin

Japanese crypto exchange DMMBitcoin suffered a hack on May 31, losing some 4,502.9 Bitcoin (BTC) worth around $308 million to bad actors in crypto’s seventh largest hack and the biggest heist since December 2022, per Chainalysis.

The company imposed restrictions on services like withdrawals, spot trading buys, new leveraged positions, and new user onboarding till further notice to stem more outflows.

Outflows may have originated from hot wallets used for frequent transactions but the platform did not rule out a compromise of one of its cold storage solutions. At press time, DMM had not disclosed details of the vulnerability exploited by hackers during the “unauthorized leak.”

Reimbursements and Compliance with Local Law

According to a notice, full reimbursements are possible due to compliance with local law. Japanese rules require virtual asset service providers to manage corporate liquidity separately from user funds.

Should Users Custody Bitcoin on Crypto Exchanges?

The leak underscores a popular question within the crypto community, whether users should store funds on crypto exchanges long-term. Experts have often argued that centralized exchanges aren’t banks, and users shouldn’t leverage these platforms for digital asset storage.

As the pro-self-custody saying goes – “Not your keys, not your coins.” Another issue highlighted by the DMM incident is exchanges managing user deposits in-house.

The Risks of Centralized Crypto Custody

Crypto exchanges are typically used for quick transactions across multiple decentralized networks for a basket of digital tokens. In a sense, exchange handling customer crypto custody expedites this process but also runs the risk of hacks, theft, and bankruptcy.

Another exchange hacked. 4,502 #Bitcoin gone.

Not your keys, not your coins. Don't leave your coins on an exchange. https://t.co/kTnKkIR43A

— Dan (@btc_dan) May 31, 2024

The 850,000 Mt Gox Bitcoin hack in 2014 was an early example of the risks of keeping crypto on centralized platforms. Following suspended withdrawals throughout the 2022/2023 Terra and FTX contagion, the issue has claimed a spotlight among burning crypto concerns.

Advocacy for Self-Custody

Many participants staunchly advocate for self-custody and keeping assets on decentralized solutions like MetaMask or in cold storage.

Tags: BitcoinBlockchainRegulation
Dan K

Dan K

Dan K, the chief editor, is a visionary wordsmith, shaping narratives with finesse. His discerning eye for detail creates literary masterpieces.

Related Posts

Arthur Hayes speaking about Bitcoin as Japan’s new Prime Minister announces economic stimulus measures

Arthur Hayes Predicts $1M Bitcoin as Japan’s New PM Unveils Economic Stimulus

October 22, 2025

Arthur Hayes predicts Bitcoin could hit $1M as Japan’s new PM Sanae Takaichi launches economic stimulus, signaling potential...

blockchain

Bolivia’s President-Elect Rodrigo Paz Turns to Blockchain to Fight Corruption

October 20, 2025

Bolivia’s new president Rodrigo Paz plans to use blockchain in public procurement and crypto asset declarations as part...

Metaplanet and Bitcoin Magazine logos, symbolizing their new partnership to expand operations in Japan.

Japan Moves Toward Allowing Banks to Buy Bitcoin Under New Regulatory Framework

October 19, 2025

Japan’s regulators are reviewing changes that could let banks buy and hold Bitcoin, signaling a major shift in...

24H HOLD token price chart showing 35% surge despite market pullback

Crypto markets surge as Trump confirms October 31 summit with Xi Jinping

October 19, 2025

Crypto markets rebound after Trump confirms October 31 summit with Xi Jinping, easing US-China tensions and sparking optimism...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • About Us
  • Advertise
  • BTC-PULSE
  • Contact Us
  • Events
  • Privacy Policy
  • Sitemap
  • Terms of Service