Japanese cryptocurrency exchange DMM Bitcoin announced its closure following a cyberattack resulting in the loss of $320 million. User assets will be transferred to SBI VC Trade.
$320 Million Bitcoin Theft
The attack, occurring on May 30, 2024, resulted in the theft of over 4,500 bitcoins from a single wallet. Despite the company's promises to compensate for losses with the help of its parent company, DMM Group, stability could not be regained. This ranks among the largest cryptocurrency thefts in Japan following the $530 million Coincheck breach in 2018.
Asset Transfer to SBI VC Trade
On December 2, DMM Bitcoin announced an agreement with SBI VC Trade to transfer customer accounts and deposit assets to the latter. The transfer is slated for March 2025 and includes Japanese yen, cryptocurrencies, and crypto stocks, ensuring a seamless transition for customers.
Industry Implications
This event highlights a broader crisis for centralized cryptocurrency exchanges in 2024. In addition to DMM Bitcoin, exchanges in India, Singapore, and Turkey have suffered from hacking attacks. The rise in thefts in the industry raises significant concerns about the security of centralized platforms.
The closure of DMM Bitcoin underscores the current security issues within the cryptocurrency industry, heightening users' demands for more secure platforms and services.
