Japanese cryptocurrency exchange DMM Bitcoin has announced its plan to shut down operations some months after it suffered a devastating hack that resulted in the theft of approximately $321 million worth of digital assets.
SBI VC Trade to Take Over
Following the shutdown of the Japanese crypto exchange, SBI VC Trade, a cryptocurrency-focused division under the SBI Group, has issued a formal statement confirming its plans to procure the exchange’s assets.
An English translation of the Monday statement read:
“SBI VC Trade Co., Ltd., a consolidated subsidiary of SBI Holdings, Inc., which operates a cryptocurrency exchange business, is pleased to announce that the two companies have reached a basic agreement to accept the transfer of all accounts and assets held by DMM Bitcoin Co., Ltd., for the cryptocurrency trading service provided by DMM Bitcoin.”
As part of the agreement between the two companies, DMM Bitcoin customers’ assets, including their Japanese yen and cryptocurrencies, will be transferred to SBI VC Trade by March 2025.
The announcement further noted that SBI will be expanding its cryptocurrency trading options by adding 14 new spot trading items and that both companies will maintain open communication with their customers regarding the transfer details and timeline.
DMM Bitcoin Suffers $305M Hack
DMM Bitcoin’s decision to shut down is hardly unexpected, as the company struggled to recover from a major cyber attack that occurred some months back. The severity of the attack was notable, ranking it among the largest and most impactful crypto exchange hacks of the year.
In May, DMM Bitcoin suffered a massive hack that resulted in the theft of approximately 4,502.9 BTC, worth around $305 million at the time. The hack happened when a private key linked to a wallet containing the bitcoins was compromised.
A month after the attack, the exchange obtained a 5 billion yen loan to support its recovery, with plans to raise an additional 50 billion yen through its corporate network and subordinated loans, ultimately aiming to raise $320 million to reimburse affected customers. However, all attempts to recover the lost funds failed.
Investigators suggested that the Lazarus Group, a notorious North Korean-backed cybercrime organization, was behind the DMM hack, with evidence indicating that the group laundered some of the stolen funds via the Huione Guarantee marketplace.
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