Japanese Crypto Exchange DMM to Close Business Following $305M Hack

Troubled Japanese crypto exchange DMM Bitcoin has announced it will close its operations after losing around $320 million in a hack that occurred earlier this year. The hack left the company unable to recover financially, forcing it to transfer users’ assets to another crypto exchange.

DMM to Shut Down Activities

In late May, DMM suffered a private keys exploit, losing 4,502.9 BTC worth over $305 million. Self-proclaimed blockchain investigator ZachXBT, who traced the movements of the stolen funds using his expertise, explained how the stolen BTC stash was transferred through various wallets as they were moved on-chain. ZachXBT stressed that the notorious North Korea-linked Lazarus group was the cause of the hack. The security breach is now considered one of the largest in Japan’s crypto history.

Months after unsuccessful attempts to reclaim the stolen funds, DMM Bitcoin shut down its operations. A local report confirmed that the troubled firm will transfer customers’ assets to SBI VC Trade, a crypto-focused subsidiary under SBI Holdings. The report explained that all customer accounts and deposited assets will be securely transferred before the end of March 2025.

A statement released today reiterated that the two crypto exchanges agreed that SBI would assume control of the deposited assets.

DMM Bitcoin urged its users to settle all leveraged positions before the transfer. On the bright side, SBI VC Trade will feature 14 crypto assets currently offered on DMM.

More Crypto Hacks

DMM Bitcoin’s security exploit is not a one-off occurrence of crypto hacks experienced by crypto exchanges. Another notable incident occurred with the Indian exchange WazirX earlier this year, which suffered a $230 million loss. The stolen funds were moved through a series of complex transactions, making it difficult for authorities to track the perpetrators. Last month, the Delhi Police arrested a man, SK Masud Alam, who created a fake account that enabled the hack.

These events highlight the ongoing vulnerabilities in the crypto space, where even established platforms can fall victim to attacks, leading to major financial damage. As a result, exchanges and users alike should become more cautious, stressing the importance of stronger security to protect against future breaches.