DMM Bitcoin Shuts Down After $320 Million Hack, Japan's Second-Largest; Assets to SBI VC Trade

Dec 2, 2024, 04:56 AM

Japanese cryptocurrency exchange DMM Bitcoin has announced it will shut down operations following a significant hack on May 30 that resulted in the loss of approximately 4,502.9 bitcoins, worth around 48.2 billion yen ($320 million). The private key breach forced the company to abandon plans to restructure its operations despite a mid-year capital injection of 55 billion yen ($365 million). Since the hack, customers have been unable to purchase new cryptocurrencies, with service restrictions continuing for over six months. DMM Bitcoin plans to transfer its customer accounts and assets to SBI VC Trade, a subsidiary of the SBI Group, by March 2025. However, leveraged positions will not be transferred, and customers holding such positions are required to settle them before the handover. The announcement led to a rise in SBI Holdings' stock price as the market reacted to the acquisition. This incident marks Japan's second-largest cryptocurrency exchange hack, following the $530 million Coincheck breach in 2018. The closure of DMM Bitcoin underscores the ongoing risks faced by cryptocurrency exchanges, even those operating in regulated environments.