Japanese cryptocurrency exchange DMM Bitcoin is preparing to liquidate after losing $320 million in a private key hack. The exchange is struggling to recover from the loss and is reportedly ceasing efforts to restart operations. Customer assets will be transferred to SBI VC Trade, an exchange operator under the SBI Group. The exchange was compromised in May after falling victim to a server breach and private key hack, which the company called an “unauthorized leak.” The hack led to the loss of over 4,500 BTC from a single wallet. At the time, DMM Bitcoin stated all user deposits would be fully guaranteed as it halted withdrawals, trading, and new account openings.
To compensate all users the platform promised to procure the equivalent amount of BTC. The DMM hack was the second largest after the Coincheck hack in 2018, during which hackers stole a staggering $530 million.
