DMM Exchange Hack: Entering the Top 10 Bitcoin Thefts of All Time, How Does It Impact BTC Prices?

Bittime - DMM Bitcoin, Japan's leading crypto exchange, is embarking on a major initiative to raise $321 million to buy back Bitcoins lost in a recent hack, with the aim of compensating affected customers and stabilizing its operations.

DMM Exchange Hack and Its Impact

On May 31, DMM Bitcoin suffered a major security breach, resulting in the loss of approximately 48 billion yen ($305 million) in Bitcoin. Security analysts from Blocksec reported that 4,502.9 BTC was illegally moved from the exchange's reserves, with the stolen funds divided into groups of 500 BTC into ten different wallets.

Bitcoin Recovery Strategy By DMM Exchange

In response to these huge losses, DMM Bitcoin has revealed a comprehensive recovery plan to buy back lost Bitcoins without causing major disruption in the broader Bitcoin market. The exchange aims to secure 50 billion yen ($321 million) to buy back stolen Bitcoin as part of efforts to stabilize operations and regain user trust.

7th Biggest Crypto Theft of All Time

The hack, which Chainalysis considers the seventh-largest crypto theft, prompted immediate regulatory scrutiny. The Japanese Financial Services Authority has ordered DMM Bitcoin to conduct a thorough investigation into the incident and provide a detailed report on the violations and the company's compensation strategy.

Japanese Ministry of Finance's Steps Regarding the DMM Case

Additionally, Finance Minister Shunichi Suzuki has promised to increase preventive measures against future security breaches in the crypto sector.

To date, DMM Bitcoin has secured a loan of 5 billion yen and is in the process of raising additional funds of 48 billion yen.

Potential Impact of BTC Price on the Market: Not Significant

Although DMM Bitcoin's plan to buy back $321 million worth of Bitcoin seems significant, the actual impact on the market is expected to be minimal. This purchase was only about 4,500 BTC, which is only about 0.023% of the current total circulating supply of about 19.7 million coins, according to Coingecko data.

In comparison, the US spot Bitcoin ETF made purchases exceeding $500 million, which had a more substantial impact on Bitcoin price dynamics.

Current Market Conditions: BTC Tends to Rise

Currently, the price of Bitcoin is just above $71,000, having risen 2.9% in the past day and 4.6% over the past week. Despite this increase, the market has seen more than $30 million in liquidations, according to Coinglass. This price increase coincides with a marked increase in the number of new Bitcoin addresses, as reported by Glassnode, indicating renewed interest and the potential for higher valuations in the future.

Additionally, technical analysis shows that Bitcoin is attempting to break through a significant resistance level on the daily chart. A successful breakout could trigger a major rally, pushing the asset price to new highs.

Assessing Bitcoin's Valuation: Overvalued Compared to Its Valuation

AMBCrypto analysis highlights that the Network Value to Transactions (NVT) ratio, which compares market capitalization to transaction volume, has been trending upwards. This metric suggests that Bitcoin may currently be overvalued based on its transaction capabilities.

Conclusion

DMM Bitcoin's substantial buyback plan, while a critical move for the exchange, is unlikely to cause major waves in the broader Bitcoin market. However, it emphasizes the importance of security in the crypto space and the need for strong measures to protect against such breaches. As Bitcoin prices hover above $71,000, market participants should remain vigilant, considering both technical indicators and broader market dynamics to assess future moves.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.