Key Takeaways:
- Closure Following Hack: DMM Bitcoin will liquidate operations after a $320 million hack in May 2024, marking the second-largest crypto breach in Japan’s history.
- Asset Transfers to SBI VC Trade: Customer assets, including crypto and yen, will be transferred to SBI VC Trade by March 2025.
- Cybersecurity Challenges: The hack reflects a trend of high-profile breaches, underscoring vulnerabilities in centralized exchanges globally.
Japanese cryptocurrency exchange DMM Bitcoin has announced its closure following a $320 million hack in May 2024 that compromised over 4,500 BTC.
The breach, attributed to a private key compromise linked to the Lazarus Group, is among Japan’s largest crypto heists, second only to the $530 million Coincheck hack in 2018.
Japanese exchange DMM Bitcoin to shut down, transfer assets to SBI Group unit after $300 million hack https://t.co/8iB2B8V2zl
— The Block (Come to Emergence) (@TheBlock__) December 2, 2024
Despite assurances to fully compensate user deposits, the incident disrupted operations, including trading and withdrawals, as the company sought to recover lost assets.
Customer assets, including Japanese yen and cryptocurrencies, will be transferred to SBI VC Trade, an exchange operated by SBI Group, with completion expected by March 2025.
SBI VC Trade will also manage the transition of crypto stocks from DMM Bitcoin accounts.
DMM Bitcoin’s struggles extend beyond the hack. In November, its affiliate DMM Crypto abandoned the Seamoon Protocol, a Web3 gaming initiative, citing unfavorable business conditions.
Japanese cryptocurrency exchange DMM Bitcoin will shut down operations and sell its assets to an SBI Group subsidiary. The company abandoned plans to restructure its operations following the hack of 48.2 billion yen worth of bitcoins in late May. https://t.co/EeoKXKE5h2
— Wu Blockchain (@WuBlockchain) December 2, 2024
Plans to develop a proprietary digital currency with Progmat were also scrapped.
This closure underscores the growing cybersecurity challenges faced by centralized exchanges, with 2024 witnessing numerous high-profile breaches, including attacks on WazirX, BingX, and BtcTurk.
Founded in 2018 by e-commerce giant DMM Group, DMM Bitcoin’s liquidation highlights the vulnerabilities of the crypto exchange ecosystem.
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