DMM Bitcoin to Shut Down Amid $300 Million Hack Fallout

SBI VC Trade to Absorb DMM Bitcoin's Operations by 2025

Japanese cryptocurrency exchange DMM Bitcoin has announced plans to cease operations following a devastating hack earlier this year that resulted in losses exceeding $300 million. The exchange will transfer its assets and customer accounts to SBI VC Trade, the crypto subsidiary of financial giant SBI Group, by March 2025, according to a statement released Monday. However, leveraged trading positions will not be part of the transfer, with DMM Bitcoin requiring all such accounts to settle their positions beforehand.

The exchange suffered a significant security breach in May, losing 4,502.9 BTC, valued at approximately $306 million at the time. The scale of the theft forced DMM Bitcoin to initiate a substantial funding effort in June, raising approximately 55 billion yen ($365.1 million) to stabilize its operations. 

This included 5 billion yen ($33.2 million) through borrowing on June 3, a capital infusion of 48 billion yen ($318.6 million) on June 7, and an additional 2 billion yen ($13.3 million) through subordinated borrowing on June 10. Despite these efforts, the exchange determined that transferring its operations to SBI VC Trade was the best course of action.

SBI VC Trade, which will take over DMM Bitcoin’s custodial assets, confirmed it plans to incorporate the 14 cryptocurrencies currently offered by the shuttering exchange into its spot trading portfolio. The transition reflects SBI's growing footprint in the Japanese cryptocurrency market, positioning itself as a leading player in the region's digital asset ecosystem. DMM Bitcoin intends to close all operations following the completion of the asset transfer, marking the end of its services after a turbulent chapter in its history.

This article has been refined and enhanced by ChatGPT.