DMM Bitcoin to shut down after over 300M dollars hack
The May hack that caused losses of over $300 million has led to the closure of the Japanese cryptocurrency exchange DMM Bitcoin. The exchange's assets will be purchased by SBI VC Trade, the cryptocurrency division of the Japanese financial giant SBI Group, the company announced on Monday.
DMM Bitcoin announced on Monday that it had reached an agreement with SBI to transfer customer accounts and custodial assets to the latter by approximately March 2025, according to an English translation of a Japanese statement. According to the exchange, open positions in leveraged trading are not included in the transfer and need to be settled prior to the transfer.
The company claims to have determined that maintaining the status quo would seriously impair customer convenience. A group of cryptocurrency exchanges has been asked by the Financial Services Agency to review trading risks since the theft.
DMM Bitcoin to cease operation after asset transfer
The company reported that, through a combination of funding programs, it had acquired roughly 55 billion yen ($365.1 million) in June. On June 3, it borrowed 5 billion yen ($33.2 million), and on June 7, it increased its capital by 48 billion yen ($318.6 million). On June 10, DMM Bitcoin acquired an extra 2 billion yen ($13.3 million) through subordinated borrowing, marking the completion of the last tranche.
According to the statement, DMM Bitcoin plans to shut down after the asset transfer is finally completed. Prior to completing the transfer of custodial assets, SBI VC Trade said on Monday that it would start managing spot trading for 14 cryptocurrencies that are currently traded on DMM Bitcoin.
Crypto hack that caused DMM Bitcoin to shut down
The upcoming shutdown of Japanese cryptocurrency exchange DMM Bitcoin follows a security breach that occurred on the exchange in May. According to the exchange, 4,502.9 BTC—roughly $306 million at the time—had been taken.
Second largest crypto hack
This attack is considered the second-largest cryptocurrency hack in Japan, following the Coincheck hack in 2018 that cost $530 million. ZachXBT, a blockchain investigator, reported in July that the online marketplace Huione Guarantee had been used to launder $35 million of the stolen funds. The investigator went on to say that given the indicators and laundering techniques used, North Korea's Lazarus Group might be accountable.
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