The Japanese cryptocurrency exchange DMM Bitcoin is set to shut down its operations following a significant hack in May 2024, which resulted in the theft of 4,502.9 BTC (valued at approximately $306 million at the time). In response, SBI VC Trade, the cryptocurrency arm of the SBI Group, will acquire DMM Bitcoin's assets.
๐Key Details:
Asset Transfer Timeline:
DMM Bitcoin plans to transfer customer accounts and custodial assets to SBI VC Trade by March 2025. Leveraged trading positions are excluded from the transfer and must be settled by the customers beforehand.Financial Impact of the Hack:
The May security breach caused a massive loss, but DMM Bitcoin managed to raise 55 billion yen (~$365.1 million) in June 2024 through a mix of loans and capital increases to address the fallout.SBI VC Trade's Expansion:
SBI VC Trade has announced it will begin offering spot trading for the 14 cryptocurrencies currently available on DMM Bitcoin. This is expected to occur before the custodial asset transfer is finalized.Closure of DMM Bitcoin:
After the asset transfer, DMM Bitcoin will cease its operations, marking the end of its cryptocurrency trading services.
This acquisition underscores the ongoing challenges faced by cryptocurrency exchanges in maintaining security and operational stability in an environment prone to cyberattacks. It also highlights SBI Group's ambition to expand its crypto market presence in Japan.