DMM Bitcoin, a Japanese cryptocurrency exchange, has recently faced a significant setback, losing over $300 million worth of Bitcoin in an unauthorized leak from its digital wallet. The incident has left the exchange scrambling to contain the damage and reassure its customers.

The exchange reported that it had lost approximately ¥48.2 billion, equivalent to 4,502.9 Bitcoins, in the "leak." While the exact details of the incident remain unclear, Chainalysis, a global cryptocurrency analysis firm, has identified it as one of the most significant crypto breaches in recent history.

The Largest Crypto Breach Since December 2022

In a social media post, Chainalysis announced that the hack of DMM Bitcoin, involving $305 million worth of Bitcoin, stands as the largest breach since December 2022 and ranks as the 7th largest crypto hack in history. The firm marked the funds associated with the incident as "stolen."

Customer Deposits Guaranteed

Despite the incident, DMM Bitcoin assured its customers that their Bitcoin deposits would be fully safeguarded, with support from its group companies. The exchange has taken measures to prevent further unauthorized access and has implemented restrictions on some services to ensure additional safety.

Investigation Underway

The Japanese Financial Services Agency has instructed the company to conduct an inquiry into the root cause of the event and take measures to shield customers from potential losses. Law enforcement authorities have also initiated an investigation into the matter, as reported by the business daily Nikkei.

A History of Crypto Hacks in Japan

Japan has a history of crypto hacks, with the most notable being the Mt. Gox exchange going bankrupt after a theft in 2014, resulting in losses of over $470 million. Another Japanese crypto exchange, Coincheck, faced a similar hack in 2018, losing over $500 million.