Japanese Exchange DMM Bitcoin to Shut Down After $320M Hack

DMM Bitcoin is set to liquidate its operations following a devastating $320 million hack. The exchange will transfer customer accounts and assets to SBI VC Trade by March 2025.

Japanese cryptocurrency exchange DMM Bitcoin has announced its plans to cease operations and transfer all customer accounts and assets to SBI VC Trade, a subsidiary of the financial giant SBI Group. This decision follows a $320 million loss due to a hack that compromised a private key in May 2024.

Details of the Hack

The breach, which occurred on May 30, was described by DMM Bitcoin as an “unauthorized leak” that resulted in the loss of over 4,500 Bitcoin. This incident marks one of the most significant hacks in Japan’s crypto history, second only to the $530 million Coincheck hack in 2018.

Despite initial assurances to protect customer deposits, the company was forced to halt withdrawals, new account registrations, and trading activities. DMM Bitcoin also pledged to procure an equivalent amount of Bitcoin to compensate affected users, relying on financial support from its parent group.

Blockchain analyst ZachXBT later linked the hack to the Lazarus Group, a North Korean cybercrime syndicate. Approximately $35 million of the stolen funds were traced to dubious platforms such as Huione Guarantee.

Transition Plan

According to a Nikkei Asia report on December 2, the transfer of customer accounts and assets to SBI VC Trade is expected to be completed by March 2025. DMM Bitcoin has reassured customers that their holdings, including Japanese yen and cryptocurrencies, will remain secure during the transition.

DMM Bitcoin, launched in 2018 by e-commerce giant DMM Group, has faced mounting challenges beyond the hack. The company recently discontinued its Seamoon Protocol—a Web3 gaming and anime content initiative—and shelved plans to launch a stablecoin due to unfavorable market conditions.

A Broader Trend of Crypto Exchange Hacks

The DMM Bitcoin incident is part of a worrying trend of attacks on centralized crypto exchanges in 2024.

• In July, India’s WazirX suffered a $235 million breach.
• Singapore’s BingX faced a $52 million hack in September.
• Turkey’s BtcTurk lost $55 million in a June exploit.
• More recently, Seychelles-based XT.com paused withdrawals after a suspected $1.7 million hack.

Additionally, U.S. federal prosecutors last week charged five individuals in connection with a hacking operation that stole $11 million in crypto and sensitive data. This highlights the growing sophistication and frequency of cyberattacks targeting digital asset platforms.

The Future of DMM Bitcoin Customers

As DMM Bitcoin winds down, customers are urged to monitor communications from the exchange and SBI VC Trade regarding the asset transfer process. This transition represents a critical test of the platform’s ability to safeguard its users amid a turbulent period for centralized exchanges globally.

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