Major

Bitcoin

<p>DMM Bitcoin, a well-known cryptocurrency exchange in Japan, <a href="https://www.japantimes.co.jp/business/2024/12/02/companies/dmm-bitcoin-close/">announced</a> plans to liquidate following a devastating hack in May that resulted in the theft of $320 million in Bitcoin.&nbsp;</p>
<p>The breach, which compromised the exchange’s private keys, marks one of the largest crypto hacks in Japan's history. DMM Bitcoin, a part of the DMM.com group, will transfer its customer assets to SBI VC Trade, a subsidiary of SBI Group, by March 2025, as the company struggles to recover from the financial impact.</p>
<h2 id="dmm-bitcoin-suffers-major-loss">DMM Bitcoin Suffers Major Loss</h2>
<p>In late May, DMM Bitcoin <a href="https://bsc.news/post/japanese-crypto-exchange-dmm-bitcoin-loses-350-m-in-hack">experienced</a> a major security breach that resulted in the theft of over 4,500 Bitcoins from one of its wallets. The breach was traced back to a vulnerability in the exchange's private keys. The stolen Bitcoin was valued at approximately ¥48.2 billion (around $320 million), and the hack was later confirmed as the largest crypto heist of 2024.</p>
<p>The incident has left the company reeling, and DMM Bitcoin has since restricted several services, including crypto asset withdrawals. While it managed to secure a similar amount of Bitcoin in June with financial backing from its parent company, the hack's long-term financial strain has made it difficult for DMM Bitcoin to continue operations.&nbsp;</p>
<p>The company issued an apology on its website, citing ongoing efforts to resolve the situation but also acknowledging the significant blow to its financial standing.</p>
<h2 id="regulatory-scrutiny-and-systemic-failures">Regulatory Scrutiny and Systemic Failures</h2>
<p>In the aftermath of the hack, Japan's Financial Services Agency (FSA) issued a business improvement order to DMM Bitcoin in September. The FSA criticized the company for its management practices, particularly the concentration of authority within a single team that handled both system operations and security. The agency pointed out the lack of decentralized management, especially concerning the private keys that are vital to securing customer funds.</p>
<p>The hack itself, which occurred on May 30, was described by some as an "unauthorized leak" of private key information. DMM Bitcoin had pledged to recover the stolen Bitcoin using its own resources and support from its parent company.&nbsp;</p>
<p>This breach is now the second-largest hack ever suffered by a Japanese cryptocurrency exchange, following the infamous Coincheck hack of 2018, which saw over $530 million stolen.&nbsp;</p>
<p>As the hack’s aftermath continues to unfold, blockchain analyst, ZackXBT have <a href="https://x.com/zachxbt/status/1812466959109521649">reported</a> that a portion of the stolen funds, approximately $35 million, was laundered through the crypto scam platform Huione Guarantee.&nbsp;</p>
<h2 id="moving-customer-assets-to-sbi-vc-trade">Moving Customer Assets to SBI VC Trade</h2>
<p>As part of the restructuring, DMM Bitcoin has entered into an agreement with SBI VC Trade to transfer all customer assets to the exchange. This process is expected to be completed by March 2025.</p>
<p>SBI VC Trade is part of the SBI Holdings group, a significant player in Japan’s financial sector, and reportedly has the infrastructure in place to handle the transfer of both fiat and crypto assets. Under this agreement, users of DMM Bitcoin will see their deposits, including both crypto and yen, moved to SBI VC Trade's platform. The transition will also include the transfer of any remaining crypto stocks held by DMM Bitcoin customers.</p>

DMM Bitcoin to Liquidate After $320M Hack

Table of Contents

BSCN

Other articles published on Dec 20, 2024

Pudgy Penguins Price Prediction: PENGU Plummets 23% As This Solana Meme Coin Rival Surges Past $3...

Nigeria’s Anti-Corruption Agency Busts Massive Crypto Romance Scam, Arrests 792 in Lagos

Latest Ripple (XRP) News: Analysts Predict 700% Rally For XRP, Fantom Aims For ATH This Winter, A...

XRP Lawsuit To End Soon? SEC Prepares For ‘Potential’ Shutdown

4 Best Cheap Cryptos to Invest in December for High Potential Gains

CYBRO leaps 200% in 24 hours following exchange listing

Join our free newsletter for daily crypto updates!