$320 Million Hack Leads to Liquidation

Japanese crypto exchange DMM Bitcoin has announced its closure following a cyberattack that resulted in a loss of $320 million. Despite months of attempts to recover customer funds, the company ultimately decided to transfer its remaining accounts to another operator, SBI VC Trade.

Lazarus Group Suspected as the Culprit

Renowned crypto analyst ZachXBT has pointed to the Lazarus Group, a North Korean hacker collective, as the likely perpetrator of the attack. His investigation traced approximately $35 million of the stolen funds to a Cambodian money-laundering network and found strong evidence of the group’s involvement. However, DMM Bitcoin did not gain any tangible benefits from these findings.

DMM Bitcoin’s Official Statement

According to The Nikkei, DMM Bitcoin stated its decision to close the exchange was made with the protection of its customers as the top priority. In a previous statement, the company explained:
"Protecting our customers is our number one priority. Therefore, we have decided to transfer all accounts and assets to another company. We sincerely apologize for the inconvenience caused. We plan to cease operations once this transfer is complete."

The exchange attempted a fundraising effort in June to recover customer losses. Despite these efforts, the losses could not be fully compensated, leading to the decision to transfer its assets to SBI VC Trade and wind down operations.

Call for Stricter Security Measures

The case of DMM Bitcoin underscores the need for robust security protocols for cryptocurrency exchanges. Shortly before DMM Bitcoin’s closure, Japanese financial regulators warned other platforms to implement tighter oversight and enhanced security measures.

Crypto Hacks Declining, but Risks Remain

While the overall number of cryptocurrency hacks is decreasing, their sophistication continues to grow. The DMM Bitcoin incident serves as a reminder for users to rely exclusively on trusted and secure platforms.

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