The Japanese cryptocurrency exchange has revealed its plans to raise $320 million through its website in order to buy bitcoin and compensate the victims of their recent hack.
DMM Bitcoin’s website guarantees that all customers who had Bitcoin (BTC) during the hack will receive a refund from “group companies.” The website states, “As previously announced, we will ensure the safety of all Bitcoin (BTC) held by customers by enlisting the support of group companies to replace the amount of leaked Bitcoin (BTC).”
On June 3, DMM Bitcoin secured a 5 billion yen loan, and on June 7, they are scheduled to raise an additional 48 billion yen through a capital increase. The specifics of this increase were not disclosed on the website. Moreover, the company plans to add 2 billion yen through subordinated loans on June 10, as mentioned in the announcement.
DMM Bitcoin assures that these loans and fundraising efforts will not impact the overall BTC market pricing. They did not provide any further information regarding the hack but have promised a thorough investigation. The website states, “We are currently investigating the cause of the unauthorized disclosure. We will provide an update as soon as we have more details.”
In terms of the hack, the exchange was compromised on May 31, resulting in the loss of over 4,500 Bitcoin (BTC) valued at approximately $308 million, which would now be worth $319 million. The company claims that all the stolen BTC was taken from customers’ wallets and has committed to full reimbursement. The hacker distributed the stolen bitcoin across 10 wallets in 500 BTC increments.
Initially, the company asserted that they could issue complete refunds due to compliance with Japanese regulations that mandate virtual asset service providers to manage corporate liquidity separately from user funds.