DMM Bitcoin Plans $320M Raise to Recover Funds After Major Hack

DMM Bitcoin, a Japanese cryptocurrency exchange, is planning to raise 50 billion yen (approximately $320 million) to compensate users for the $320 million worth of Bitcoin lost in a recent major hack. The exchange intends to procure an equivalent amount of Bitcoin from its parent company, DMM.com, to recover stolen customer funds while minimising market impact. Investigations into the unauthorised outflow of 4,503 BTC on May 31 are ongoing, with DMM Bitcoin expressing deep apologies to its customers for the incident. The exchange has outlined plans to promptly inform the public of any new developments in the investigation. To finance the compensation, DMM Bitcoin has already borrowed five billion yen ($32 million) and plans further capital increases totaling 50 billion yen through subordinated debt financing and additional borrowing. This financial support from DMM.com aims to ensure the reimbursement of customers' Bitcoin holdings, making it one of the largest cryptocurrency hacks in history and necessitating significant recovery efforts akin to other major incidents in the past.