Japanese cryptocurrency exchange DMM Bitcoin is preparing to wind down operations after a devastating $320 million Bitcoin hack in May 2024. Despite assurances to recover from the breach, the company has failed to stabilize, prompting a deal to transfer customer assets to SBI VC Trade, a subsidiary of the SBI Group, by March 2025.
DMM $320M Bitcoin Theft Proves Fatal
The May 30 hack, which DMM Bitcoin described as an “unauthorized leak,” led to the theft of over 4,500 Bitcoin from a single wallet. At the time, the exchange halted withdrawals, trading, and new account openings. But it pledged to fully compensate user deposits with the support of its parent company, DMM Group.
Despite these assurances, DMM Bitcoin struggled to regain its footing. The loss ranks as the second-largest cryptocurrency theft in Japan’s history, trailing only the $530 million Coincheck hack in 2018. Blockchain investigator ZachXBT linked the DMM breach to the notorious Lazarus Group, citing similarities in laundering tactics and off-chain indicators.
SBI VC Trade to Absorb Customer Accounts
On December 2, DMM Bitcoin announced an agreement to transfer customer accounts and deposit assets to SBI VC Trade. “Under this agreement, customer deposit assets (in Japanese yen and crypto assets) will be transferred to us as soon as March 2025,” read a statement from SBI VC Trade. The transfer will also include crypto stocks held by DMM Bitcoin users, ensuring a seamless transition for customers.
The closure comes amid broader challenges for DMM Bitcoin. In November, the exchange shuttered its Seamoon Protocol, a Web3 gaming and content platform, citing “rapid changes in the business environment.” The platform had also been working with Progmat to issue a stablecoin, but the project was shelved due to sustainability concerns.
2024 has been a rough year for centralized exchanges globally, with high-profile hacks plaguing the industry. Notable breaches include India’s WazirX losing $235 million in July, Singapore’s BingX suffering a $52 million hack in September, and Turkey’s BtcTurk losing up to $55 million in June.
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