The transfer of BTC worth over $30 million by a hacker who attacked the Japanese DMM Bitcoin has sparked speculation of a market crash.
News of a substantial movement of stolen Bitcoin (BTC) sparked another frenzy in the crypto market. A hacker associated with the recent DMM Bitcoin breach transmitted 500 BTC on Thursday, June 27. This transaction, valued at approximately $30 million, prompted apprehensions regarding a potential market crash, particularly in light of the recent large-scale sell-offs by government entities and miners.
DMM Bitcoin Hack and Transfer of Stolen Funds
A DMM Bitcoin infiltrator transferred 500 BTC stolen from the exchange to a new address, per a post on X by Peck Shield Alert. Amid the Bitcoin price volatility, the news prompted speculation regarding a substantial market dump. Nevertheless, the on-chain transactions do not indicate a crypto exchange release of the stolen BTC reserve.
However, the apprehension persists, as the intruder may liquidate assets to generate a profit. This action could be observed when Bitcoin experiences an additional rebound, as the crypto fraudster would prepare to capitalize on increased profits through price appreciation.
On June 3, DMM Bitcoin, one of Japan’s largest cryptocurrency exchanges, disclosed a significant security compromise. The theft of 4,502.9 BTC, estimated to be over $300 million at the time, was the outcome of the incident.
Additionally, the exchange’s security infrastructure was exposed to significant vulnerabilities due to unauthorized access to its wallet. DMM Bitcoin promptly implemented measures to prevent additional unauthorized access in response to the breach.
They have temporarily suspended the acceptance of new purchasing orders for spot trading, the opening of new accounts, and the withdrawal of crypto assets. Furthermore, the exchange prohibited all spot purchases on the platform. The exchange also cautioned that Japanese yen withdrawal may require longer than usual.
Japan’s Financial Services Agency (FSA) has also directed DMM Bitcoin to investigate the breach comprehensively. The FSA also requested that the exchange protect customers from potential damages. DMM Bitcoin assured its consumers of their BTC holdings in an official statement.
The exchange stated, “You can rest assured that all of your Bitcoin (BTC) deposits will be fully reimbursed.” We will acquire the equivalent quantity of BTC that was compromised with the assistance of our group companies. DMM Bitcoin sincerely apologizes for any inconvenience that its consumers may have experienced.
BTC Dump in June
Concurrently, there have been substantial declines in the Bitcoin market. The liquidation of the German government’s Bitcoin holdings garnered significant attention. It has recently transferred an additional 595 BTC to significant crypto exchanges. This offloading is a component of a broader sell-off strategy, as a German government address has sold more than 2,000 BTC in the past few days.
On June 26, the United States government transferred a considerable 4,000 BTC, amounting to $241 million, to Coinbase Prime, following in the footsteps of Germany. The price of Bitcoin plummeted by 1.5% to below $61,000 in response to the news of the U.S. government’s disposal. Additionally, Bitcoin miners have been liquidating their holdings, selling more than 30,000 BTC valued at $2 billion to mitigate losses as the hash price has plummeted. Furthermore, Bitcoin billionaires have also entered the fray. Earlier this month, they significantly contributed to selling over $4 billion in Bitcoin.
The current price of Bitcoin is just above the critical $60,000 support level, which these extensive sell-offs have influenced. From a technical standpoint, Bitcoin trades below the 50-day simple moving average (SMA) but above the 200-day SMA. This suggests that the market is ambivalent between pessimistic and bullish sentiments.
Bitcoin has experienced a minor rebound today, as short liquidations have surpassed longs amid market volatility. Short liquidations totaled $18.01 million, as indicated by Coinglass data. In addition, it is anticipated that these traders will repurchase their BTC positions to mitigate losses, which could stimulate an additional rebound. Nevertheless, longs fought valiantly, with more than $10 million liquidated within 24 hours.