The Japanese crypto exchange, DMM Bitcoin, has announced plans to raise $320 million to purchase Bitcoin and compensate victims of a recent hack.

According to DMM Bitcoin, clients who held Bitcoin (BTC) during the hack will receive refunds from what the company describes as “group companies.”

“As initially reported, we will guarantee all of the Bitcoin (BTC) held by customers by obtaining support from group companies to replace the amount of Bitcoin (BTC) that was leaked,” stated the website.

DMM Bitcoin secured a 5 billion yen loan on June 3 and plans to raise an additional 48 billion yen on June 7 through a “capital increase.” Specifics of this capital increase were not disclosed. Additionally, the company aims to add 2 billion yen through subordinated loans on June 10.

The exchange assured that these financial maneuvers would not impact the overall pricing of the BTC market. While details of the hack are still under investigation, a full report is promised once more information becomes available.

“We are currently continuing our investigation into the cause of the unauthorized disclosure. We will provide a follow-up update as soon as details are known,” the website added.

Hack Details

On May 31, DMM Bitcoin experienced a hack, resulting in the loss of over 4,500 Bitcoin (BTC), valued at approximately $308 million at the time. Today, that amount would be worth around $319 million.

The company reported that all the BTC was “leaked” from customers’ wallets and committed to full reimbursement. The stolen Bitcoin was divided across 10 wallets, each holding batches of 500 BTC.

DMM Bitcoin initially stated that they could issue full refunds due to compliance with Japanese regulations, which mandate that virtual asset service providers manage corporate liquidity separately from user funds.

For more updates on this story and other cryptocurrency news, visit Global Crypto News.

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