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The Japanese cryptocurrency exchange DMM Bitcoin, part of the DMM.com Group, is ceasing operations and preparing for liquidation. The exchange plans to transfer its customer deposits to SBI VC Trade, a local crypto exchange owned by SBI Holdings, by March 2025.
Asset Transfer to Another Exchange
Announced today (Monday), DMM Bitcoin and SBI VC have reached a basic agreement for the transfer of all customer accounts and deposit assets.
“Under this agreement, customer deposit assets (in Japanese yen and crypto assets) in accounts opened on DMM Bitcoin will be transferred to us as soon as March 2025,” a statement (translated from Japanese) confirmed.
Additionally, SBI VC will oversee the transfer of cryptocurrency stocks held by DMM Bitcoin.
DMM.com is one of Japan’s largest internet brands, offering financial services that include forex and contracts for differences (CFDs) trading, which is also one of the leading local platforms by trading volume.
Challenges in Continuing Operations
DMM Bitcoin faced significant challenges after a security breach last May resulted in a $320 million loss in Bitcoin. The attackers breached the exchange’s servers and accessed the private keys of its wallets, stealing more than 4,500 Bitcoins from a single wallet. Some analysts suspect the North Korea-linked Lazarus Group was responsible for the attack.
This breach was Japan’s second-largest crypto exchange hack, surpassed only by the $532 million Coincheck hack. Globally, it ranks among the largest thefts from cryptocurrency exchanges.
Following the attack, DMM Bitcoin assured customers that user deposits “will be fully guaranteed” and pledged to “procure the equivalent amount of BTC” to compensate affected users.
Meanwhile, attacks on cryptocurrency exchanges remain frequent. Even prominent global platforms have suffered significant losses to hackers. Earlier this year, India’s WazirX lost $225 million in cryptocurrencies, endangering its future. Similarly, Singapore’s BingX lost $52 million in September, and Turkey’s BtcTurk saw $55 million siphoned from its hot wallet in June.
This article was written by Arnab Shome at www.financemagnates.com.
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