YEREVAN (CoinChapter.com) — Japan has been a major hub for cryptocurrency, but it has also faced some of the most significant crypto hacks in history. With losses exceeding $1.4 billion, these security breaches have left a lasting mark on the industry.
DMM Bitcoin Hack: $305 Million Loss Forces Shutdown
In May 2024, a cyberattack on DMM Bitcoin resulted in the theft of 4,502.9 Bitcoin, valued at $305 million. The attack caused the Japanese crypto exchange to suspend trading and withdrawals, disrupting its operations.
To manage the aftermath, DMM Bitcoin announced plans to cease operations by March 2025. Customers’ accounts and custodial assets will transfer to SBI VC Trade, a crypto subsidiary of SBI Holdings, one of Japan’s financial giants. The transfer process includes shutting down leveraged trading positions, which cannot be migrated.
SBI VC Trade and DMM Bitcoin Agreement. Source: sbivcSBI VC Trade, which supports 14 cryptocurrencies offered by DMM Bitcoin, is expected to strengthen its position in the market through this migration.
Mt. Gox Hack: Early Lessons in Crypto Vulnerability
Once the largest cryptocurrency exchanges globally, Mt. Gox handled over 70% of Bitcoin transactions at its peak. The platform suffered its first hack in 2011, losing $8.75 million in Bitcoin. Despite this, Mt. Gox continued operations, only to face a larger breach in 2014.
Hackers stole 850,000 Bitcoin, worth approximately $615 million at the time, by flooding the system with fake Bitcoin. Notably, the breach exposed weak security measures, including the absence of version control software for the exchange’s source code.
The incident led to lawsuits against the company and its CEO, Mark Karpeles, for negligence. Mt. Gox has started its long-awaited repayments, transferring 1,545 BTC to Bitbank and 48,641 BTC to Kraken, totaling over $3.1 billion. However, approximately 90,344 BTC ($5.77 billion) still awaits distribution, leaving the civil rehabilitation plan at 36% completion after 10 years of bankruptcy proceedings.
Coincheck Hack: $534 Million Stolen in Record Attack
In January 2018, Coincheck, a major Japanese crypto exchange, suffered the largest crypto heist to date. Hackers infiltrated the exchange’s hot wallets using phishing scams and malware, stealing $534 million.
After the attack, Coincheck froze deposits and withdrawals, but the damage was already done. Investigations by Japanese authorities uncovered details about the attackers, many of whom belonged to high-income groups.
Coincheck representatives looked numb when they faced journalists. Source: BBCThe Coincheck hack exposed critical security flaws, prompting regulatory scrutiny and reforms across Japan’s cryptocurrency sector. Above all, it remains a reminder of the risks associated with inadequate safeguards in the crypto industry.
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