Japanese Crypto Exchange to Shut Down and Transfer Assets After $320 Million Hack
DMM Bitcoin, a Japanese cryptocurrency exchange, is preparing to shut down operations after suffering a devastating $320 million loss in Bitcoin due to a hack in May.
The company announced it would be transferring its customer assets to SBI VC Trade, a subsidiary of SBI Group, by March 2025, marking the end of its efforts to recover from the breach.
In a statement released on December 2, DMM Bitcoin confirmed an agreement with SBI VC Trade to handle the transfer of user accounts and assets, including both crypto and Japanese yen deposits. The company’s move comes after it was unable to recover from the hacking incident, in which over 4,500 Bitcoin were stolen from its server due to a private key vulnerability.
The hack, which took place on May 30, marked one of the largest breaches in the region, second only to the $530 million hack of Coincheck in 2018. DMM Bitcoin assured customers at the time that it would compensate for the stolen funds, even halting withdrawals and trading to prevent further losses. However, the exchange’s attempts to recover, including acquiring additional Bitcoin with support from its parent company, were ultimately unsuccessful.
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This breach also raised suspicions of involvement by the Lazarus Group, a notorious cybercrime group, as a blockchain investigator later traced some of the stolen funds to a crypto scam hub. The hack added to a string of high-profile exchange breaches in 2024, following other incidents including the $235 million hack of WazirX and a $52 million hack of BingX.
In addition to these operational setbacks, DMM Crypto also announced the discontinuation of its Seamoon Protocol, a Web3 gaming and content platform. The firm cited rapidly changing business conditions as a challenge to its sustainability.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
