Japan's well-known cryptocurrency exchange DMM Bitcoin was hacked in May this year, losing over $300 million, and has now decided to cease operations due to the severe impact, transferring all user assets to the cryptocurrency subsidiary of financial giant SBI Group, "SBI VC Trade."
According to a statement released by DMM Bitcoin on Monday, the exchange has reached an agreement with SBI, and the transfer of user accounts and custodial assets is expected to be completed by March 2025. However, the open positions in leveraged trading are not included in the transfer scope, and users must settle all related positions before the asset transfer is completed.
The decision to close DMM Bitcoin's operations stems from a hacking incident in May this year. At that time, hackers stole 4,502.9 Bitcoins (approximately $306 million at the time), causing a heavy blow to the exchange.
In order to save the situation, DMM Bitcoin launched multiple fundraising actions in June this year, raising approximately 55 billion yen (about $365 million), including borrowing 5 billion yen (about $33.2 million) on June 3, increasing capital by 48 billion yen (about $318.6 million) on June 7, and raising another 2 billion yen (about $13.3 million) in subordinated loans on June 10. However, these efforts ultimately could not reverse the fate of DMM Bitcoin ending its operations.
After DMM Bitcoin ceases operations, SBI VC Trade will take over the existing 14 cryptocurrency spot trading services of the exchange and will gradually launch them before the asset transfer is completed. This move by the SBI Group is seen as an important step to further expand its influence in the cryptocurrency market.
"4,500 Bitcoins stolen, heavily impacted! DMM Bitcoin announces closure, asset transfer to SBI Group" This article was first published on (Block Ke).
