Japanese crypto exchange DMM Bitcoin is shutting down after a devastating Bitcoin loss in May, according to a Cointelegraph report.
The exchange suffered a severe security breach that resulted in the theft of approximately 4,500 Bitcoin, valued at around US$320 million at the time.
Despite assurances to customers that their deposits would be fully reimbursed, DMM Bitcoin has been unable to recover financially from the incident and has decided to cease operations.
The exchange plans to transfer all customer accounts and assets to SBI VC Trade, another Japanese exchange operator, by March 2025.
This agreement will ensure that customers can access their funds and continue trading on a different platform.
The May hack involved both a server breach and a compromise of private keys, highlighting significant security vulnerabilities.
This incident is the second-largest crypto exchange hack in Japan’s history, surpassed only by the 2018 Coincheck hack, where US$530 million worth of cryptocurrency was stolen.
Blockchain investigator ZachXBT later revealed that a portion of the stolen funds had been laundered through the online marketplace Huione Guarantee, possibly by the Lazarus Group, a notorious cybercrime organization.
MM Bitcoin was launched in 2018 as part of the Japanese e-commerce giant DMM Group.
The company had also recently discontinued its Web 3.0 gaming platform, Seamoon Protocol, and abandoned plans to launch its own stablecoin.
Featured image credit: Edited from Freepik
