Japanese cryptocurrency exchange DMM Bitcoin announced its shutdown following a major hack that resulted in losses of over $300 million. The exchange has reached an agreement to transfer assets to SBI VC Trade.
Reasons for Exchange Closure
In May, a hacker attack on DMM Bitcoin led to the theft of 4,502.9 BTC, worth approximately $306 million at the time. Despite financial recovery efforts, the exchange decided to cease operations.
Agreement with SBI VC Trade
DMM Bitcoin reached an agreement with SBI VC Trade, the crypto arm of financial conglomerate SBI Group, to transfer client accounts and custody assets by March 2025. All assets except leveraged positions will be transferred.
Implications for Users
Users are advised to close their leveraged trading positions that will not be transferred. SBI VC Trade plans to integrate 14 cryptocurrencies currently available on DMM Bitcoin onto its platform before the asset transfer is completed.
Hacks and breaches remain significant challenges in the cryptocurrency industry. The shutdown of DMM Bitcoin highlights the importance of security and swift responses to such threats.
