DMM Bitcoin plans to raise $320 million to compensate customers after 4,502.9 BTC hack

After the hack that shook the crypto community on May 31 that resulted in the loss of 4,502.9 BTC (worth $305 million at the time of the attack), Japanese exchange DMM Bitcoin is planning mobilized 50 billion yen ($320 million) to compensate affected users.

The exchange said it will recover customers' lost funds by mobilizing an equivalent amount of Bitcoin from its member company, DMM.com

DMM Bitcoin pledges its efforts to minimize the impact on the market with its planned purchases.

The company also explained that it is still investigating the hack, apologized to all affected customers, and said it would “promptly inform” the public about the details of the incident. (if any).

In an effort to fund the necessary compensation, DMM Bitcoin borrowed 5 billion yen ($32 million) on June 3.

A capital raising of 48 billion yen ($308 million) is scheduled for June 7, and the remaining 2 billion yen ($12.8 million) will be raised through subordinated debt* on June 10.

DMM.com will provide financing as well as build a recovery fund to ensure that they have enough money to compensate affected users and secure customers' Bitcoin holdings.

Ranked as the eighth largest cryptocurrency hack in history, the Bitcoin DMM incident is among the top 10 largest cryptocurrency exchange hacks of all time.