The exchange plans to transfer assets to SBI VC Trade by early 2025.
DMM Bitcoin Ceasing Operations After Major Hack
Japanese cryptocurrency exchange DMM Bitcoin will close operations by March 2025, following a devastating $305 million hack in May 2024. The incident, involving the theft of over 4,500 BTC, undermined recovery efforts and led to the platform’s liquidation.
Asset Transfer to SBI VC Trade
DMM Bitcoin announced plans to transfer all customer accounts and holdings to SBI VC Trade, owned by SBI Group. SBI VC Trade confirmed the acquisition agreement in a Dec. 2 statement, outlining its commitment to expanding its crypto trading services with 14 spot trading options from DMM Bitcoin’s platform.
The transfer process is expected to conclude by the end of Q1 2025, with specific dates and methods to be disclosed later.
Failed Recovery Efforts After Hack
The May 2024 hack prompted DMM Bitcoin to suspend all spot trading transactions to prevent further breaches. The exchange secured loans of 5 billion yen and planned to raise an additional 50 billion yen to reimburse affected customers.
However, continued service disruptions and heightened challenges led to the decision to wind down operations.
Suspected Hackers and Laundering Attempts
The attack was linked to the Lazarus Group, which reportedly laundered $35 million through illicit marketplaces and additional funds via multiple wallets. Despite efforts to trace and recover the stolen assets, most remained unaccounted for.
The DMM Bitcoin hack ranks as Japan’s second-largest digital asset breach, after the 2018 Coincheck attack involving $534 million.
Impact on Japan’s Crypto Landscape
The closure of DMM Bitcoin raises questions about the security measures of cryptocurrency exchanges and the regulatory environment in Japan. The incident underscores the importance of robust security protocols to protect digital assets from increasingly sophisticated cyberattacks.
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