Japanese Cryptocurrency Exchange DMM Bitcoin to Cease Operations and Sell Assets
After experiencing a major hack, Japanese cryptocurrency exchange DMM Bitcoin has decided to cease all efforts to relaunch its trading platform and is in the process of selling all its assets.
The decision comes after DMM Bitcoin initiated recovery plans following a significant hack on May 30, during which over 4,500 Bitcoin, valued at approximately $308 million at the time, was stolen from one of its wallets. This incident marked the second largest hack in Japan, following the $534 million Coincheck hack in 2018.
Despite initial efforts to recover the stolen assets and reassure customers, DMM Bitcoin has announced that it will be shutting down operations and selling all its assets to SBI Group-owned trading company SBI VC Trade. The sale is expected to be completed by March 2025.
SBI VC Trade has confirmed the acquisition in a statement released on Dec. 2, stating that it will acquire all of DMM Bitcoin’s assets and customer accounts. The company plans to expand its offering by introducing 14 cryptocurrency trading pairs that are currently available on DMM Bitcoin but not supported by SBI VC Trade.
While DMM Bitcoin had initially secured a loan to aid in its recovery efforts and promised to make all users whole, the exchange has been unable to recover the stolen funds. Suspected attackers, believed to be the Lazarus Group, have been seen laundering a portion of the stolen funds through various channels.
With the closure of DMM Bitcoin, it joins a growing list of Asian exchanges that have ceased operations in 2024 due to various challenges. WazirX, a popular Indian-origin exchange, halted its operations in July after a major hack, while several South Korean exchanges have shut down for failing to comply with local regulations.
Despite the challenges faced by DMM Bitcoin and other exchanges, the cryptocurrency industry continues to evolve, with new opportunities and challenges emerging on a regular basis. It remains to be seen how the industry will adapt to these changes and continue to grow in the future.