Japan-based crypto exchange DMM Bitcoin announced that it will shut down and transfer its assets and accounts to SBI VC Trade by March next year. This decision comes after the platform suffered a major hack in May 2024, which saw hackers steal over 4,502 Bitcoin (BTC), worth approximately $305 million at the time.
DMM Bitcoin Shuts Down After Major Hack
DMM Bitcoin, one of Japan’s prominent cryptocurrency exchanges, revealed on December 2 that it would cease operations and move its customer accounts and assets to SBI VC Trade, another leading exchange in Japan. This decision comes after a significant security breach in May 2024, when the exchange lost a massive amount of Bitcoin in a sophisticated hack.
Since the hack, DMM Bitcoin had placed restrictions on its services, including suspending withdrawals and halting the acceptance of new orders for spot cryptocurrency purchases. Despite these measures, the exchange acknowledged that continuing in this restricted state would hurt its customers and agreed that shutting down was the best course of action.
“We sincerely apologize for the inconvenience caused over such a long period of time,” DMM Bitcoin said in its announcement. The platform also confirmed that it would fully transfer its customer accounts and assets to SBI VC Trade in the coming months.
The $305 Million Hack: Who Was Behind It?
The breach that led to DMM Bitcoin’s closure was one of the largest crypto hacks in recent memory, with over $305 million worth of Bitcoin stolen from the exchange. While the identities of the hackers remain unclear, there has been speculation that North Korea’s Lazarus Group—a notorious cybercriminal collective known for its high-profile crypto hacks—could be responsible.
Additionally, reports suggest that stolen funds may have been funneled through Huione Guarantee, a Cambodian payments company implicated in laundering billions of dollars in illicit cryptocurrency transactions. This highlights the ongoing challenges that exchanges face in protecting user assets from well-funded and highly skilled cybercriminals.
Asset Transfer to SBI VC Trade
In light of the hack and ongoing operational challenges, DMM Bitcoin reached an agreement with SBI VC Trade to transfer its assets, including customer funds, to the rival exchange. As part of the transition, SBI VC Trade will begin handling 14 cryptocurrency spot trading pairs previously managed by DMM Bitcoin.
The transfer of assets is expected to occur smoothly, with DMM Bitcoin ensuring that customer balances will be securely moved to SBI VC Trade. This will provide users with continued access to their funds and trading services as the shutdown process begins.
Impact on the Japanese Crypto Landscape
The closure of DMM Bitcoin and the transfer of assets to SBI VC Trade marks a significant event in the Japanese cryptocurrency exchange landscape. The hack underscores the ongoing risks facing exchanges, particularly in Japan, which has stringent regulations governing cryptocurrency businesses. While the country has been a leader in crypto regulation and compliance, the DMM Bitcoin hack reveals that even highly regulated exchanges are vulnerable to sophisticated cyber attacks.
For investors, the shutdown may signal a shift in the Japanese crypto market, with more customers potentially gravitating towards platforms with stronger security measures and higher regulatory standards.
Conclusion: DMM Bitcoin’s Exit from the Market
DMM Bitcoin’s decision to shut down and transfer assets to SBI VC Trade highlights the challenges faced by cryptocurrency exchanges in maintaining security and trust. The hack, which resulted in the loss of $305 million worth of Bitcoin, serves as a reminder of the risks associated with digital asset trading. However, by transitioning customer accounts to a stable and well-established platform like SBI VC Trade, DMM Bitcoin aims to ensure a seamless closure of its operations while minimizing disruption to its users.
As the crypto industry continues to grow and evolve, this incident underscores the critical importance of robust security protocols and regulatory compliance for exchanges looking to gain and maintain user trust.
