DMM Bitcoin, a Japanese cryptocurrency exchange, made an announcement on Friday revealing that it had fallen victim to a massive hack, resulting in the loss of over $300 million worth of BTC.

According to Chainalysis, a crypto investigative firm, this incident is considered to be the seventh-largest crypto hack in history. DMM Bitcoin disclosed that it had lost 4502.9 BTC (equivalent to $305 million). The exchange assured its customers that it would replace the stolen Bitcoin, although its website seemed to be inaccessible by Friday evening.

Beosin, a blockchain security company, stated that the stolen funds had already been spread across 10 different addresses. It is believed that the hack occurred through one of two methods. The first possibility is that the signature service of DMM Bitcoin was attacked or the multi-sig private key was compromised. The hacker then used a similar historical transfer address to receive the funds in order to escape detection and raise any alarms. The second scenario is that the exchange wallet controller fell victim to an address spoofing scam. In this case, only the first five digits and the last two digits of the receiving address were verified during the transfer, resulting in the funds being sent to the hacker’s address.

Chainalysis highlights that this exploit by DMM Bitcoin is the largest crypto hack since December 2022. At the time of writing, Bitcoin is trading at $67,493, experiencing a decrease of approximately 1.5% in the past 24 hours.

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