Japanese cryptocurrency exchange DMM Bitcoin has fallen victim to a massive cyberattack, resulting in a staggering loss of 48 billion Yen, approximately $305 million. The platform has assured users that all lost funds will be reimbursed and has restricted spot buys.

The attack, which occurred on May 29, was executed at 1:26 p.m. Tokyo time, and on-chain tracker Whalealert quickly flagged a suspicious transaction worth 4,502 BTC moments later. The exchange noticed unauthorized outflows, and 4,502.9 BTC was "leaked" from the platform's wallets.

The funds remain in a wallet identified by "1B6r..w7P", but there has been no official confirmation of the attacker's identity. The platform plans to raise the equivalent amount of lost funds via its group of companies and has restricted all spot buys on the platform. Yen withdrawals will also be slower than usual.

This is not the first time a Japanese cryptocurrency exchange has been hacked. In recent years, multiple large-scale attacks have occurred on crypto-focused platforms, including Liquid, which lost $80m worth of crypto in August 2021, and Bitpoint, which lost ¥3.5bn worth of cryptocurrencies from its hot wallets, worth $32 million at the time.

The nation saw its largest attack in 2018, when Coincheck, a leading exchange, lost $500 million worth of cryptocurrencies. Despite these setbacks, Japan has been quietly nurturing an active crypto economy, with the Government Pension Investment Fund (GPIF), the largest pension fund globally, announcing its intentions to accommodate Bitcoin in its treasury earlier this year.

The incident highlights the need for increased security measures in the cryptocurrency industry, and users are advised to remain vigilant and take necessary precautions to protect their assets. Sign up for Invezz Signals™ to get easy-to-follow crypto, forex, and stock trading signals, and make trading simple by copying our team of pro-traders. Consistent results guaranteed.