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

Jun 4, 2024
    DMM Bitcoin will raise 7 billion yen ($44 million) through loans and 48 billion yen through a capital increase.The capital will be used to purchase bitcoin and pay back users who held BTC on the exchange.The cause of the hack remains unclear.
As a seasoned crypto investor with a deep understanding of the market and its intricacies, I find the recent announcement from DMM Bitcoin both reassuring and concerning. On the one hand, I’m encouraged by the exchange’s commitment to making things right for its users and restoring confidence in the platform. The fact that they are taking significant steps to raise funds and purchase more bitcoin to compensate victims is a positive sign.DMM Bitcoin Exchange from Japan has announced its intention to secure approximately 350 billion yen (equivalent to $320 million) through fundraising to purchase bitcoin (BTC) and compensate those affected by last week’s cyberattack.

Based on information on its website, DMM Bitcoin, a subsidiary of DMM Financial and part of the larger DMM Group established in 1999, assures that all bitcoins held by users are backed up by support from affiliated companies within the group. In 2023, DMM Group reported earnings of approximately 347.6 billion yen ($2.2 billion).

On June 3rd, DMM Bitcoin obtained a loan worth approximately 5 billion yen from an unspecified source. The company is planning to procure an additional 48 billion yen through a “capital increase” on June 7th. Furthermore, it intends to acquire an extra 2 billion yen via subordinated loans on June 10th.

As a financial analyst, I would recommend allocating the funds towards acquiring bitcoins and subsequently refunding our clients who previously held this digital currency in their respective accounts.

The origin of the hack that resulted in over $305 million being taken remains a mystery. DMM Bitcoin is currently looking into the matter and will provide further information as soon as possible.

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2024-06-05 15:10