Japan based crypto exchange DMM Bitcoin is set to liquidate

DMM Bitcoin is halting its efforts to revive its business and plans to transfer customer assets to SBI VC Trade, a crypto exchange operated by SBI Group, by March 2025. According to a statement issued on December 2, the two companies have reached a basic agreement for SBI to take over all customer accounts and assets. The statement confirmed that deposits in Japanese yen and cryptocurrencies would be transferred to SBI, along with crypto stocks held by DMM Bitcoin.

Japan based cryptocurrency exchange DMM Bitcoin has prepared to shut down operations after suffering a USD 320 million Bitcoin theft in May 2024 due to a private key hack.

The Bitcoin hack in May 2024

The hack occurred on May 30, when DMM Bitcoin suffered a server breach and private key theft described by the company as an “unauthorised leak.” The attackers stole over 4,500 Bitcoin, valued at USD 320 million at the time, from a single wallet. DMM Bitcoin assured users their deposits would be fully covered, pausing withdrawals, account registrations, and trading. The company pledged to replenish the stolen funds with help from affiliated group companies.

This incident marked the second-largest crypto exchange hack in Japan’s history, following the USD 530 million Coincheck hack in 2018.

Launched in January 2018, DMM Bitcoin is owned by the Japan based ecommerce player DMM Group. The exchange had also been pursuing various projects, such as the Seamoon Protocol, a Web3 gaming and content platform featuring anime and games produced by its parent company. However, in November, the firm announced the discontinuation of Seamoon, citing rapid changes in the business environment that made the project unsustainable. The company had also collaborated with the stablecoin platform Progmat to develop its own stablecoin, but this initiative faced similar challenges.