Japanese cryptocurrency exchange DMM Bitcoin has announced it will cease operations by March 2025, following a devastating hack that resulted in losses exceeding $300 million. Despite months of recovery efforts, the platform could not regain its footing, leading to the decision to shut down and sell its assets.
Sale to SBI VC Trade Confirmed
According to a December 2 statement by SBI VC Trade, a subsidiary of the SBI Group, an agreement has been reached to acquire all of DMM Bitcoin’s assets as part of the liquidation process. The transfer, which includes customer accounts and holdings, is expected to be completed by the end of Q1 2025. Further details regarding the asset transfer will be shared in upcoming announcements.
SBI VC Trade also plans to expand its services by incorporating the 14 crypto spot trading options currently available on DMM Bitcoin’s platform. Discussions between the two firms on the transfer process are ongoing.
The May 2024 Hack: A Turning Point
DMM Bitcoin’s fate was sealed after a cyberattack on May 31, 2024, resulted in the theft of 4,502.9 BTC, worth approximately $305 million at the time. The exchange swiftly suspended all spot purchase transactions and assured customers that it would reimburse lost funds by purchasing an equivalent amount of Bitcoin.
To fulfill these obligations, the exchange secured a 5 billion yen loan in June and outlined plans to raise an additional 50 billion yen. However, service restrictions and mounting challenges ultimately led to the decision to wind down operations.
In July 2024, the notorious Lazarus Group was identified as the likely culprit behind the hack. The attackers were tracked laundering over $35 million of stolen funds through Huione Guarantee, an online marketplace known for illicit activities. In August, blockchain security firm PeckShieldAlert reported an additional transfer of 500 BTC across multiple wallets, but efforts to recover the stolen funds have been unsuccessful.
DMM Bitcoin is Japan’s Second-Largest Crypto Breach
The DMM Bitcoin hack ranks as Japan’s second-largest digital asset breach, surpassed only by the $534 million Coincheck hack in 2018. Coincheck’s infamous breach was attributed to poor security practices, such as storing the majority of assets in a single hot wallet protected by a single private key, rather than using cold storage or multi-signature wallets.
