Japan's DMM Bitcoin exchange has announced its plans to halt services, to liquidate citing a security breach in May which resulted in a massive $320 million loss as detailed in a December 2 announcement.
Customer assets are set to be moved to SBI VC Trade, under SBI Holdings, by March 2025.
In a statement, DMM Bitcoin announced the agreement to transfer customer holdings to SBI VC Trade by the end of November 2024.
Liquidation
and as part of its wind-up protocol, DMM Bitcoin will shift customer assets to SBI VC Trade by March 2025. Following this, it will cease all business activities.
Open leveraged positions should be closed by users before the scheduled transfer, as they won’t be moved.
While specific aspects of the transfer strategy are still under negotiation between DMM Bitcoin and SBI VC Trade,
DMM Bitcoin experienced a crucial attack on May 30, leaving the exchange's security compromised after hackers accessed a wallet with over 4,500 Bitcoin.
DMM Bitcoin pledged to use resources from their parent firm, DMM Group, a large-scale Japanese e-commerce entity, to ensure customers aren't left out of pocket after the incident.
Huge Losses
In June, plans were revealed to raise $320 million to compensate those affected by the breach. This included a 5 billion yen loan and an additional 50 billion yen capital initiative.
Recovering the pilfered funds has been challenging, affecting the exchange's promises to its users.
This breach is among the worst cryptocurrency thefts Japan has faced, second to a 2018 Coincheck exploit.
There’s speculation that the notorious Lazarus Group, a North Korean hacking syndicate, was behind the DMM Bitcoin breach, using familiar methods to obscure fund origins.
Blockchain detective ZachXBT observed over $35 million siphoned from DMM laundered through Cambodia’s Huione Guarantee.
Lazarus Group is known for major cyber-attacks on financial exchanges, one of which targeted Axie Infinity’s Ronin bridge, a significant event in the crypto realm.
DMM Crypto has also ceased operations of the Seamoon Protocol,
DMM Group, along with its arm, DMM Crypto, announced a new venture with Progmat to roll out a stablecoin.
Sources indicate that this team effort is aimed at producing a regulation-compliant stablecoin in Japan, to enhance DMM's digital economy initiatives.
The stablecoin would act as a backbone for Seamoon Protocol’s treasury, keeping its native SMP token stable.
In November, the Seamoon Protocol faced closure, casting doubts on the future of this stablecoin initiative.
