DMM Bitcoin, a Japanese cryptocurrency exchange, made an announcement on Friday stating that it had fallen victim to a hack amounting to over $300 million worth of BTC.
According to Chainalysis, a crypto investigative firm, this incident is considered the seventh-largest crypto hack ever recorded, as DMM Bitcoin lost 4502.9 BTC ($305 million).
Although DMM Bitcoin assured its customers that their stolen Bitcoin would be replaced, the exchange’s website appeared to be inaccessible by Friday evening.
The blockchain security company Beosin revealed that the stolen funds have been divided among 10 different addresses and were likely obtained through one of two methods:
1. A conventional attack on the signature service of DMM Bitcoin or the compromise of the multi-sig private key. Subsequently, the attacker used a historical transfer address similar to avoid detection and alert.
2. The exchange wallet controller fell victim to an address spoofing scam, where only the first five and last two digits of the receiving address were verified during the transfer, resulting in the funds being transferred to the hacker’s address.
Chainalysis highlighted that this exploit is the largest crypto hack since December 2022.
At the time of writing, Bitcoin is being traded at $67,493. The leading cryptocurrency by market capitalization has experienced a decrease of nearly 1.5% in the past 24 hours.
To stay updated, make sure to subscribe to receive email alerts directly to your inbox. You can also check the price action on our website and follow us on X, Facebook, and Telegram. Don’t miss out on The Daily Hodl Mix!
Disclaimer: The opinions expressed in The Daily Hodl are not to be taken as investment advice. It is recommended that investors conduct thorough research before engaging in high-risk investments involving Bitcoin, cryptocurrencies, or digital assets. Please be aware that any transfers or trades you make are done at your own risk, and you are responsible for any losses you may incur. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it act as an investment advisor. Kindly note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
