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DMM Bitcoin, once a leading cryptocurrency exchange in Japan, ceased operations in October 2024 following a devastating hack in May that resulted in the theft of $320 million worth of digital assets. The breach, caused by private key theft, led to the loss of 4,500 Bitcoin, and despite efforts to restore services, the platform couldn’t recover due to the scale of the damage.
According to local reports, DMM Bitcoin will transfer its remaining assets, including Japanese yen and cryptocurrencies, to SBI VC Trade by March 2025. However, customers with open margin trading positions must settle their accounts before transitioning to the new platform. Any accrued fees from the DMM Bitcoin platform will not transfer over.
SBI VC Trade, a subsidiary of SBI Holdings, will maintain confidentiality for DMM Bitcoin’s clients during the transfer process. The coordination between the two companies is ongoing, with more details expected soon.
In the wake of the hack, Japan’s Financial Services Agency (FSA) issued an improvement order to DMM Bitcoin in September 2024, highlighting deficiencies in the exchange’s risk management. Despite receiving ¥55 billion from its parent company DMM.com to cover customer losses, the exchange decided to close, citing the continuing inconvenience to users from restricted services.
This incident underscores the severe cybersecurity risks faced by cryptocurrency exchanges and the need for regulatory oversight to prevent future breaches.
