Japanese cryptocurrency exchange, DMM Bitcoin, has announced it will shut down in March, 2025. Its customers’ accounts and assets will be transferred to another platform called SBI VC Trade.
The decision to shut down was made because DMM Bitcoin was hacked in May and the hackers stole 4,502.9 bitcoins, which were worth about $305 million at the time of the hack.
After the hack, DMM Bitcoin limited its services, such as stopping withdrawals and not allowing customers to buy crypto. However, the company realized that keeping things this way was causing problems for its customers, so it decided to close. They also apologized to their customers for the inconvenience caused by the long delay in resolving the issue.
In their words,
“We sincerely apologize for the inconvenience caused over such a long period of time.”
It’s unclear who was responsible for the hack, but many suspect North Korea’s Lazarus Group, a notorious hacking organization. Some of the stolen money seems to have gone through Huione Guarantee, a payments company in Cambodia that has been linked to laundering large amounts of illegal money.
SBI VC Trade, the platform taking over DMM Bitcoin’s accounts and assets, announced it will handle the 14 cryptocurrencies that DMM Bitcoin currently supports before the transfer.
Final Thoughts
This situation shows the ongoing challenges and risks in the cryptocurrency industry, especially regarding security and customer protection. It also depicts the critical need for exchanges to invest in robust cybersecurity measures.
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