DMM Bitcoin to Cease Operations Amid Asset Transfer to SBI VC Trade

DMM Bitcoin, a prominent cryptocurrency exchange in Japan and a subsidiary of the DMM.com Group, has announced plans to shut down its operations. The exchange intends to transfer its customer deposits to SBI VC Trade, a local cryptocurrency platform owned by SBI Holdings, by March 2025.

DMM Bitcoin and SBI VC Trade have finalised a basic agreement to facilitate the transfer of all customer accounts and deposit assets. According to a statement from the exchange, customer funds—comprising Japanese yen and cryptocurrency holdings—will be transitioned to SBI VC Trade as part of the arrangement. Additionally, SBI VC will manage the transfer of cryptocurrency stocks currently held by DMM Bitcoin.

DMM Bitcoin operates as part of DMM.com, one of Japans largest internet companies. The group offers various financial services, including forex and contracts for differences (CFD) trading, making DMM Bitcoin one of the top local platforms by trading volume. Despite its strong market presence, the exchange has faced mounting challenges, which have ultimately led to its decision to wind down operations.

A major setback occurred in May when DMM Bitcoin suffered a severe security breach. The attack led to the theft of over 4,500 Bitcoins, valued at approximately $320 million. The hackers gained access to the exchanges servers and compromised the private keys of its wallets. The incident is considered the second-largest crypto exchange hack in Japan, following the $532 million Coincheck breach. Globally, it remains one of the largest cryptocurrency heists.

Following the attack, DMM Bitcoin assured its users that their deposits would be fully guaranteed. The company also pledged to procure an equivalent amount of Bitcoin to compensate affected customers. Industry analysts suggest that the North Korea-linked Lazarus Group could be behind the breach, given its history of targeting crypto exchanges.

The challenges faced by DMM Bitcoin are part of a broader pattern of increasing security risks within the cryptocurrency sector. Several high-profile platforms have also suffered significant losses due to hacking incidents this year. India‘s WazirX lost $225 million in cryptocurrencies, while Singapore-based BingX reported a $52 million breach. Turkey’s BtcTurk was also affected, losing $55 million from its hot wallet in June.

Despite advancements in security protocols, the threat of cyberattacks remains a persistent issue for crypto exchanges worldwide. DMM Bitcoins closure underscores the growing need for robust security measures and the ongoing risks associated with the cryptocurrency market.