SBI VC Trade, a leading Japanese cryptocurrency finance firm, has finalized a deal to take over the assets and customer accounts of DMM Bitcoin, the crypto exchange harmed by a massive $320 million security breach earlier this year. According to a December 25 notice, SBI VC Trade will assume control of DMM’s accounts and assets on March 8, 2025.
DMM Bitcoin’s customers, many of whom faced uncertainty following the hack, can breathe a sigh of relief. SBI VC Trade assured users that they would not need to open new accounts, as the firm will create accounts automatically for a seamless transition.
The decision by DMM to liquidate and transfer its customers to SBI VC Trade comes in the wake of an unprecedented breach in May 2024. Attackers infiltrated DMM’s servers and compromised wallets holding 4,500 Bitcoin, valued at $320 million at the time. Despite promises from DMM to replace stolen funds, the damage proved irreparable, forcing the exchange to shut down operations.
The Role of North Korea-Linked Hackers
The exploit has been attributed to the North Korean cybercrime group TraderTraitor, as confirmed by the FBI, Japan’s National Police Agency, and the Department of Defense Cyber Crime Center (DC3). Details of the heist reveal a multi-layered operation.
The FBI reported that TraderTraitor used social engineering tactics, posing as a recruiter on LinkedIn to lure an employee from Ginco, a crypto wallet firm. The attacker sent a malicious script disguised as a pre-employment test, which the employee unknowingly uploaded to their GitHub page. Months later, the group exploited this vulnerability to infiltrate DMM Bitcoin’s systems, manipulating transaction requests and absconding with the Bitcoin.
A Year of Major Crypto Losses
The DMM Bitcoin breach is among the largest crypto hacks of 2024, second only to the $235 million hack of WazirX, an India-based exchange. According to blockchain security firm Hacken, attacks on centralized crypto services more than doubled this year, with total losses surpassing $694 million.
As SBI VC Trade steps in to salvage DMM Bitcoin’s operations, the incident underscores the critical need for robust cybersecurity measures in the cryptocurrency sector. For now, DMM’s customers have a pathway to recovery.
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