DMM Bitcoin Wallet Emptied
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DMM Bitcoin is a large Japanese exchange platform, with colourful marketing depicting the bitcoin being lovingly held by a Japanese supermodel. Unfortunately, such security does not appear to have been very effective in preventing the bitcoin from getting stolen. Recovery is still underway.
This is a global/international case not involving a specific country.[1][2][3][4][5][6]
About DMM Bitcoin
"At around 13:26, we detected an outflow of Bitcoin （BTC) from our wallet.
Details of the damage situation will continue to be under investigation, but what is known at this stage is as follows. In addition, although we have already taken measures against fraudulent spills, we have implemented restrictions on the use of some services as much as possible to ensure additional safety."
"We would like to inform you separately regarding the resumption of service.
We deeply apologize for any inconvenience and concern to our customers in this event."
"The root cause of the attack has yet to be revealed, whether it is an address spoofing incident, private key compromise or even an inside job, remains to be seen."
"While on-chain sleuths have cracked some historic hacks, this trail of tainted coins spread across multiple addresses could prove a byzantine blockchain maze."
This is a global/international case not involving a specific country.
The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.
Include:
- Known history of when and how the service was started.
- What problems does the company or service claim to solve?
- What marketing materials were used by the firm or business?
- Audits performed, and excerpts that may have been included.
- Business registration documents shown (fake or legitimate).
- How were people recruited to participate?
- Public warnings and announcements prior to the event.
Don't Include:
- Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
- Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.
The Reality
This sections is included if a case involved deception or information that was unknown at the time. Examples include:
- When the service was actually started (if different than the "official story").
- Who actually ran a service and their own personal history.
- How the service was structured behind the scenes. (For example, there was no "trading bot".)
- Details of what audits reported and how vulnerabilities were missed during auditing.
What Happened
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
| Date | Event | Description |
|---|---|---|
| May 30th, 2024 10:12:49 PM MDT | Blockchain Transaction | The large transaction is recorded on the blockchain. |
| May 30th, 2024 10:14:00 PM MDT | WhaleAlert Capture | WhaleAlert reports that "4,502 #BTC (308,948,771 USD) transferred from unknown wallet to unknown new wallet". |
| May 30th, 2024 10:26:00 PM MDT | Wallet Outflow Detected | According to the official report, the outflow from the wallet was first detected at this time. |
| May 31st, 2024 7:14:39 AM MDT | First Announcement Release | DMM Bitcoin releases a "Report on fraudulent outflow of cryptographic assets" in Japanese. This is the first time the URL is captured. The report is absent a precise timestamp and only visible to residents of a limited geographic area, presumably Japan. |
| May 31st, 2024 7:31:34 AM MDT | First Announcement Capture | The text in Japanese is captured in the internet archive. |
Technical Details
This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?
Total Amount Lost
The total amount lost has been estimated at $308,949,000 USD.
How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
Immediate Reactions
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?
Ultimate Outcome
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?
Total Amount Recovered
The total amount recovered is unknown.
What funds were recovered? What funds were reimbursed for those affected users?
Ongoing Developments
What parts of this case are still remaining to be concluded?
Individual Prevention Policies
No specific policies for individual prevention have yet been identified in this case.
For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.
Platform Prevention Policies
Policies for platforms to take to prevent this situation have not yet been selected in this case.
For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.
Regulatory Prevention Policies
No specific regulatory policies have yet been identified in this case.
For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.
References
- ↑ @whale_alert Twitter (Jun 3, 2024)
- ↑ Whale Alert | Transaction Details (Jun 3, 2024)
- ↑ 【重要】暗号資産の不正流出発生に関するご報告（第一報） - DMMビットコイン（2024/05/31） (Jun 3, 2024)
- ↑ Arkham (Jun 3, 2024)
- ↑ 【DMMビットコイン】暗号資産（仮想通貨）ならDMM Bitcoin (Jun 3, 2024)
- ↑ Rekt - DMM Bitcoin - Rekt (Jun 3, 2024)