The current value of the stolen Bitcoin is just over $274 million. In response to the breach, DMM Bitcoin quickly raised $320 million to reimburse affected users, demonstrating the exchange’s commitment to mitigating the impact of the hack on its customers.
Blockchain investigator ZachXBT previously attributed the attack to the Lazarus Group, a notorious hacking organization allegedly linked to the Democratic People’s Republic of Korea. The Lazarus Group has been implicated in several high-profile cyberattacks, and its involvement in the DMM Bitcoin hack highlights the growing sophistication of cybercriminals targeting the cryptocurrency industry.
According to on-chain analysts, the methods used to launder the stolen funds and various off-chain indicators strongly suggest the Lazarus Group’s involvement in the heist.
Following the hack, the attackers reportedly split the stolen Bitcoin into smaller batches of 500 BTC and transferred them to new wallets. PeckShield identified that the latest funds moved since the May 31 incident originated from one of these wallets. This strategy of splitting and moving funds is a common tactic among cybercriminals to obfuscate the trail of stolen assets and avoid detection.
In July, ZachXBT alleged that the attackers transferred approximately $35 million worth of Bitcoin to the Cambodia-based exchange Huione Guarantee. The exchange has faced accusations of facilitating the laundering of funds from various crypto hacks, pig butchering scams, and other illicit activities. The involvement of exchanges like Huione underscores the challenges in tracking and recovering stolen cryptocurrency, as these platforms can serve as intermediaries for converting stolen assets into fiat currency or other cryptocurrencies.
The DMM Bitcoin hack is a significant addition to the growing list of cryptocurrency thefts in 2024, which had already claimed over $473 million in losses before this incident. The hack is the second largest in Japan’s history, following the 58 billion yen loss suffered by Coincheck in 2018. In the aftermath of the DMM Bitcoin hack, the exchange halted all spot trading on its platform and warned that withdrawals in Japanese yen might take longer than usual, as they implemented measures to prevent further unauthorized outflows.
This incident also highlights broader trends in the cryptocurrency industry.
According to a Chainalysis report, while illegal activity on blockchain networks has decreased by almost 20% year-to-date, malware attacks and stolen funds have surged. Stolen funds inflows doubled to $1.58 billion compared to $857 million last year, and ransomware inflows climbed around 2%, reaching $459.8 million. The DMM Bitcoin hack serves as a stark reminder of the ongoing vulnerabilities in the cryptocurrency sector and the need for enhanced security measures to protect digital assets from increasingly sophisticated cyber threats.
