A leading cryptocurrency exchange in Japan, DMM Bitcoin, is liquidating due to a $320 million fraud that occurred in May 2024. All accounts and assets will be transferred to SBI Group.
Reasons for DMM Bitcoin Liquidation
DMM Bitcoin, after facing a $320 million fraud in May 2024, decided to liquidate. Hackers compromised servers and stole over 4,500 BTC, impacting more than 450,000 accounts.
Details of the Exchange Hack
On May 30, 2024, DMM Bitcoin was compromised due to a private key leak. The hacking of a wallet resulted in over 4,500 BTC being stolen, transferred to 10 different wallets. Japan's Financial Services Agency instructed a thorough investigation, leading DMM Bitcoin to cease operations post-liquidation.
Future of Assets and Accounts
According to the official announcement from SBI VC Trade, the crypto arm of Japanese financial organization SBI Group, all DMM Bitcoin accounts and assets are scheduled to transfer to SBI Group in March 2025. Moreover, SBI VC Trade plans to handle 14 cryptocurrency spot trading items previously managed by DMM Bitcoin.
While hacks and frauds are not new to the crypto industry, the DMM Bitcoin case highlights the importance of preparedness and security. The liquidation underscores the scale of losses and the future steps for asset transfer.
