DMM Bitcoin, a leading Japanese cryptocurrency exchange, will cease operations following a devastating security breach in May that resulted in losses of over $300 million.
Japanese Exchange DMM Bitcoin Shut Down After $300 Million Hack, Assets Transferred to SBI Unit
The exchange announced today that it has reached an agreement with SBI VC Trade, the crypto arm of financial conglomerate SBI Group, to transfer client accounts and custody assets by March 2025.
However, leveraged trading positions will not be included in the transfer and will need to be closed by users in advance.
SBI VC Trade plans to integrate 14 cryptocurrencies currently available on DMM Bitcoin onto its platform before the asset transfer is completed.
Details of Hacking and Financial Recovery Efforts
The security breach in May led to the theft of 4,502.9 BTC, worth approximately $306 million at the time.
In response, DMM Bitcoin raised approximately ¥55 billion ($365.1 million) through funding initiatives in June.
These funds included ¥5 billion ($33.2 million) through debt on June 3, ¥48 billion ($318.6 million) through a capital increase on June 7 and an additional ¥2 billion ($13.3 million) through subordinated debt on June 10.
Despite these efforts to stabilize its operations, DMM Bitcoin ultimately decided to cease operations.
*This is not investment advice.
