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

• DMM Bitcoin announces closure after a $320 Million hack in May 2024.
• Customer accounts and assets to transfer to SBI VC Trade by March 2025.
• DMM Bitcoin abandoned its Web3 project Seamoon Protocol due to financial strain.

DMM Bitcoin, a prominent Japanese cryptocurrency exchange and part of the DMM.com Group, has announced plans to cease operations after suffering a catastrophic $320 Million loss. The massive breach in May 2024, resulted from a private key hack that led to the theft of several Bitcoins.

Despite attempts to stabilize and recover its services, the DMM crypto exchange struggled under the weight of the financial damage. Efforts to restructure and find solutions for its users ultimately proved unviable.

Faced with unconquerable challenges, DMM Bitcoin has decided to liquidate its business and discontinue operations. This decision marks a significant blow to Japan’s cryptocurrency sector and highlights the ongoing risks within the digital asset space.

DMM Bitcoin has announced plans to transfer all customer accounts and assets to SBI VC Trade to protect user funds and ensure continuity. SBI VC Trade is a cryptocurrency exchange operated by the financial powerhouse SBI Group.

According to a translated statement released on December 2, the two companies have reached a preliminary agreement to facilitate the transfer. This move comes as DMM Bitcoin prepares to wind down its operations following a significant security breach earlier this year.

The partnership aims to provide a secure transition for affected users while maintaining the integrity of their 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,” it read. SBI VC Trade will also handle the transfer of crypto stocks held on DMM Bitcoin.

DMM Bitcoin has confirmed that all customer assets, including cryptocurrency holdings and fiat deposits, will be transitioned to SBI VC Trade by March 2025. This arrangement is intended to prioritize customer protection and ensure a smooth transfer process as the exchange winds down its operations.

Continue reading to grab the full picture of this breaking Bitcoin news.

The DMM Bitcoin Exchange Hack

On May 30, DMM exchange experienced a major security breach. The company described it as an “unauthorized leak.” This incident led to the theft of over 4,500 Bitcoin (BTC) from a single wallet.

In response, the platform suspended withdrawals, new account registrations, and trading activity, while assuring users that all deposits would be fully protected. DMM exchange also committed to replacing the stolen BTC by securing equivalent funds with support from its affiliated companies to ensure users were compensated.

The incident marked the second-largest cryptocurrency theft in Japan, trailing only the $530 Million Coincheck hack in 2018, and is among the biggest exchange heists globally. Some experts have suggested that the North Korea-linked Lazarus Group may have orchestrated the attack.

“It is suspected that Lazarus Group is behind the hack due to similarities in laundering techniques and offchain indicators,” zachxbt said at the time.

One More Exchange Added to the 2024 Hacks List

The hack on DMM Bitcoin highlights a growing wave of security breaches targeting centralized cryptocurrency exchanges in 2024. Notable incidents this year include a $235 Million theft from India’s WazirX in July, a $52 Million attack on Singapore’s BingX in September, and a $55 Million exploit of Turkey’s BtcTurk in June.

DMM Bitcoin, launched in January 2018 under the DMM Group, has faced increasing challenges since the May hack. The exchange had been working on the Seamoon Protocol, a Web3 platform for gaming and digital content. However, the project was abandoned in November 2024 due to significant shifts in the business landscape that exacerbated financial strain.

Following the breach, DMM Bitcoin pledged to compensate users by securing an equivalent amount of stolen Bitcoin, seeking financial backing from affiliated companies. However, the severity of the losses ultimately forced the company to liquidate its operations.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.