Japanese crypto exchange DMM Bitcoin outlines funding plan to cover over $300 million in hack losses

DMM Bitcoin has outlined plans to cover losses from the theft of over $300 million in bitcoin from the Japanese crypto exchange last week.

At the time of the attack, DMM Bitcoin said 4,502.9 BTC ($306 million) had been stolen in an “unauthorized outflow of funds.” It sought to reassure users, stating it would guarantee the full amount of their deposits by procuring an equivalent amount of bitcoin.

According to an English translation of a statement made in Japanese on the company’s website on Wednesday, DMM Bitcoin outlined a schedule for securing funds to procure the bitcoin with financial support from its group company, the electronic commerce and Internet company DMM Group.

The crypto exchange said it had procured 5 billion yen ($32 million) through borrowing as of June 3. A further capital increase of 48 billion yen ($307.6 million) is scheduled for June 7, followed by subordinated borrowing of 2 billion yen ($12.8 million) on June 10, the firm said, bringing the total funds to $352.4 million.

BMM Bitcoin will then “proceed with the procurement of the equivalent amount of bitcoin while taking care not to impact the market,” it said, adding that it “deeply apologizes for the great inconvenience and concern this situation has caused our customers” and was continuing to investigate the hack.

According to crypto forensics firm Elliptic, the exploit ranks as the “eighth largest crypto theft of all time, and the largest since the $477 million hack suffered by FTX, in November 2022.”