Originally published on: December 02, 2024
Japanese cryptocurrency exchange DMM Bitcoin is facing liquidation after losing $320 million in Bitcoin due to a private key hack in May, from which the company has been unable to recover. SBI VC Trade, an exchange operator under SBI Group, will take over customer assets by March.
In a statement released on December 2, DMM Bitcoin announced a basic agreement with SBI VC Trade to transfer all customer accounts and deposit assets. The exchange is ceasing operations and transferring assets to SBI in an effort to safeguard customer funds.
DMM Bitcoin suffered a significant breach in May when hackers compromised their server and private keys, resulting in the loss of 4,500 Bitcoin from a single wallet. Despite assuring users that their deposits would be guaranteed, the exchange faced challenges in recovering the lost funds.
The decision to liquidate comes as the second-largest loss in the region since the Coincheck hack in 2018. Suspicions point to the Lazarus Group for laundering the stolen crypto on various platforms, including Huione Guarantee.
DMM Bitcoin exchange, launched in 2018, is now part of the e-commerce conglomerate DMM Group. The exchange had plans to enhance its ecosystem with a stablecoin project but cited recent challenges in the business environment for discontinuing the initiative.
Centralized exchange hacks have been prevalent throughout 2024, with incidents at WazirX, BingX, and BtcTurkhot wallets resulting in significant losses. The industry continues to face security challenges as blockchain technology evolves.
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