DMM Bitcoin, a crypto exchange based in Japan, reported a significant loss of $305 million following a recent hack.

The security breach led to the theft of 4,502.9 Bitcoin (BTC) from the exchange. As a result, BTC price witnessed a steep decline

A Japanese crypto exchange, DMM Bitcoin, announced on Friday that it had fallen victim to a security breach that led to the theft of bitcoin valued at over $300 million.

The exchange stated in a blog post that a total of 4,502.9 BTC, valued at $305.1 million at the time of the incident, was stolen from the exchange. However, DMM Bitcoin assured that all customer bitcoin deposits would be fully covered. They plan to replace the stolen bitcoin with the help of affiliated companies, although they did not specify when this would happen.

The theft was noticed after a transaction involving 4,502 BTC was flagged by the Whale Alert account on the social platform X, formerly known as Twitter. Following the incident, DMM Bitcoin halted all crypto withdrawals, spot market purchases, and new leveraged trading positions. They are also reviewing new account applications.

The blog post mentioned that withdrawals in Japanese yen might face delays. DMM Bitcoin did not provide a timeline for when normal services would resume but promised a future update with more details.

“Please be assured that we will procure the equivalent amount of BTC equivalent to the outflow with the support of the group companies and guarantee the full amount,” the exchange stated.

Bitcoin Loses Its Buying Momentum

Following the news, BTC price declined sharply as it lost its buying demand around $69,000. As long-liquidations surged, Bitcoin dropped toward the low of $67K in an hour.

According to a report by the Japanese news service Nikkei, DMM Bitcoin had around 370,000 customer accounts by the end of 2023, based on data from an annual business report.

If verified, the sum stolen would rank among the largest crypto exchange heists ever recorded.

In 2018, Coincheck experienced a significant theft involving 58 billion yen, equivalent to about $533 million in cryptocurrency. Later that year, the exchange was acquired by the online brokerage firm Monax.

Japan also witnessed one of the most notorious Bitcoin exchange failures with Mt Gox, which lost over $400 million at 2014 values. The collapse of Mt Gox initiated a lengthy process that is now approaching its conclusion, with steps being taken to finally distribute funds to creditors.

Also read: Mt.Gox to Release $9 Billion in Bitcoin: Investors Worry, But Should They?

The Japanese trustee of Mt. Gox, Nobuaki Kobayashi, has begun transferring tokens from the exchange’s wallets. A note from Kobayashi dated May 28 indicated that there are plans to distribute Bitcoin and Bitcoin Cash to creditors.