According to Decrypt, Japanese cryptocurrency exchange DMM Bitcoin has announced plans to cease operations by March 2025. The company will transfer customer accounts and custodial assets to SBI VC Trade, the crypto division of financial giant SBI Holdings. This decision follows a significant cyberattack that resulted in a $305 million loss and the theft of 4,502.9 Bitcoin (BTC), leading to the suspension of spot trading and withdrawal services.
DMM Bitcoin has stated that it will provide further details about the transfer process, including the migration timeline and steps for customers, once they are finalized. Customers with leveraged trading positions are required to close these positions before the transfer, as they will not be included in the migration. As part of the transition, SBI VC Trade will begin supporting spot trading for 14 cryptocurrencies currently available on DMM Bitcoin.
The announcement highlights ongoing challenges in Japan’s cryptocurrency market, where security breaches have led to increased regulatory scrutiny and industry consolidation. SBI VC Trade, operating under one of Japan's largest financial groups, is expected to absorb DMM Bitcoin's customer base and assets, potentially strengthening its position in the domestic market. The shutdown of DMM Bitcoin reflects the lasting impact of the May cyberattack, one of the largest in the Japanese crypto industry this year. Despite halting all transactions and withdrawals to prevent further losses, DMM Bitcoin has struggled to fully recover.
The migration signifies a notable consolidation in the industry, with SBI VC Trade poised to expand its footprint by inheriting DMM Bitcoin's customers and infrastructure. DMM Bitcoin did not immediately respond to requests for comment on the closure.
