DMM Bitcoin Shuts Down After $308 Million Hack, Clients Transferred to SBI VC Trade

DMM Bitcoin, a popular cryptocurrency service in Japan, is shutting down operations following a major hack in which over $300 million was stolen. On Monday, the company announced it will transfer all client accounts and assets to another crypto platform—SBI VC Trade, a subsidiary of the Japanese financial conglomerate SBI Group.

Details of the Hack and Aftermath

The incident occurred on May 31, when hackers withdrew 4,502.9 bitcoins from the platform, valued at $308 million at the time. The current value of the stolen bitcoins exceeds $429 million. Since the hack, DMM Bitcoin restricted withdrawals and the purchase of cryptocurrencies.

Company representatives explained that maintaining these restrictions for an extended period could significantly worsen customer service quality. The closure of DMM Bitcoin is expected after the transfer is completed, which is scheduled for March 2025. The agreement with SBI VC Trade was signed on November 29, 2024, and both companies are still working out the details. SBI VC Trade confirmed the transfer in an official statement.

Financial and Regulatory Response

In June, DMM Bitcoin secured loans totaling 55 billion yen ($367 million) to cover the losses. However, an investigation by Japan’s Financial Services Agency revealed serious shortcomings in risk management. Specifically, there were no independent audits, and key risk management and security functions were concentrated in the hands of a small group of employees.

The company was also found to have violated rules for handling cryptocurrency transactions, including the lack of logs necessary for investigating the theft.

Investigation and Suspected Perpetrators

Blockchain security experts discovered that the stolen funds were quickly distributed across multiple wallets and partially laundered through suspicious platforms such as Huione Guarantee, which is linked to organized crime. According to researchers, the North Korean hacker group Lazarus, known for multimillion-dollar cybercrimes in recent years, is likely behind the attack.

Impact on the Crypto Industry

The theft from DMM Bitcoin is one of the largest in 2024. In just the first six months of the year, losses from crypto attacks reached $1.6 billion—almost double the amount lost during the same period in 2023.