DMM Bitcoin exchange closes after failing to recover from hack
Bitcoin exchange closes
Japanese cryptocurrency exchange DMM Bitcoin has decided to close operations following a major hack that resulted in the theft of over $300 million. The exchange’s assets will be acquired by SBI VC Trade, a subsidiary of SBI Group.
DMM Bitcoin announced that it reached an agreement with SBI to transfer customer accounts and custodial assets by March 2025. However, leveraged trading positions are excluded from the transfer, and customers are required to settle these positions before the process is completed.
The decision to cease operations follows a breach in May 2023, during which 4,502.9 BTC, valued at approximately $306 million, were stolen. To recover losses, the company raised $365 million in June through a combination of loans and capital increases.
SBI VC Trade plans to begin offering spot trading for 14 cryptocurrencies currently traded on DMM Bitcoin before completing the asset transfer.
Legacy of DMM Bitcoin
DMM Bitcoin, a subsidiary of Japan’s prominent technology firm DMM Group, offered a wide range of services, including spot trading, derivatives, and leveraged trading. The platform supported major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), making it one of the leading exchanges in the Japanese market.
However, in May 2023, the exchange suffered a significant hack that resulted in the theft of over $300 million in Bitcoin. Despite efforts to restore financial stability through capital injections and loans, the exchange announced its closure.
Some reports suggest that the North Korean Lazarus Group may be linked to the hack.
