Crypto Exchange DMM Bitcoin to Raise $320M to Pay Back Hack Victims
Crypto

Crypto Exchange DMM Bitcoin to Raise $320M to Pay Back Hack Victims

Japanese crypto exchange DMM Bitcoin has revealed plans to raise $320 million to purchase bitcoin (BTC) and reimburse victims of last week’s theft.

According to a statement on its website, any BTC owned by users would be secured by securing backing from “group companies.” DMM Bitcoin is a subsidiary of DMM Financial, which is itself a company of DMM Group, a conglomerate created in 1999 that generated 347.6 billion yen ($2.2 billion) in 2023.

On June 3, DMM Bitcoin got a 5 billion yen loan. It will raise another 48 billion yen on June 7 through a “capital increase.” And on June 10 it will add 2 billion yen through subordinated loans, the announcement stated.

The capital will be utilised to purchase bitcoin and compensate consumers that held BTC in their accounts.

The cause of the attack, which saw more than $305 million stolen, remains unclear. DMM Bitcoin says it is investigating and will notify users in due time.