The Japanese cryptocurrency exchange DMM Bitcoin reported discovering "an unauthorized leak" of around $301 million from its digital wallet. According to Bloomberg, the company stated on its website that the exchange is still looking into the outflow, equivalent to 4,503 Bitcoin. Blockchain researcher Chainalysis referred to the event as a “hack” and reported the money stolen in a tweet.
DMM Bitcoin reaffirmed in a blog post on its website that steps had been taken to stop additional fraudulent withdrawals. Due to the incident, the exchange has blocked all spot purchases on the site and issued a warning that withdrawals of Japanese yen may take longer than normal.
Crypto Hacks Still An Issue
In recent years, there has been a noticeable increase in the frequency and strength of cryptocurrency hacking, resulting in billions of dollars being taken from cryptocurrency platforms and revealing weaknesses throughout the ecosystem. According to research by Chainalysis, 2022 was the biggest year for cryptocurrency theft ever, with $3.7 billion taken. While the total amount of money stolen fell by roughly 54.3% to $1.7 billion in 2023, there were more hacking incidents—219 in 2022 compared to 231 in 2023.
Two main flaws in cryptocurrencies and blockchain technology are private keys and how they are stored. You have no control over what happens to your cryptocurrency if you don't have the keys. Giving someone else power over your cryptocurrencies when you let them store your keys for you is known as a custodial relationship between the key owner and the key holder.
Even while the total amount taken from cryptocurrency platforms in 2023 was much less than in previous years, it is evident that attackers are developing more advanced and varied exploits. The good news is that as cryptocurrency platforms advance, so do their security measures and countermeasures. Law enforcement agencies will be better able to contact exchanges where frozen money is located to commence seizure and contact services through which the funds are moved to acquire pertinent information about accounts and users when crypto platforms respond quickly to vulnerabilities. Money taken in crypto hacks will probably keep going down as these procedures get better over time.
