Japanese cryptocurrency exchange DMM Bitcoin is reportedly ceasing all efforts to relaunch the hacked trading platform despite initiating recovery plans.
According to a Nikkei Asia report, the exchange will shut down operations and sell all assets to SBI Group-owned trading company SBI VC Trade, with the sale expected to be completed by March 2025.
A Dec. 2 statement released by SBI VC Trade confirms that the company has reached an agreement with the exchange and will acquire all Japan crypto exchange DMM Bitcoin set for liquidation. The specific date of transfer will be disclosed in an upcoming announcement.
As a part of the acquisition, SBI VC Trade will expand its offering by introducing 14 cryptocurrency trading pairs currently available on DMM Bitcoin but not yet supported by SBI VC Trade. This expansion is planned to be completed before the transfer of customer accounts and assets, ensuring a seamless transition for the hacked exchange’s users.
The developments are somewhat unexpected considering that DMM Bitcoin had initiated recovery efforts and promised to make all users whole after the May 30 incident.
Over 4,500 Bitcoin, valued at approximately $308 million at the time, was drained from one of the exchange’s wallets, making it the second largest hack in Japan, following the $534 million Coincheck hack in 2018.
By June, the exchange had secured a 5 billion yen loan to aid in its recovery efforts while assuring customers and regulators that it would raise an additional 50 billion yen via its “group of companies” and subordinated loans. It was a part of the exchange’s plans to raise $320 million to pay back its customers.
Meanwhile, in July, the attackers, suspected to be the notorious Lazarus Group, were seen laundering a portion of the stolen funds via Huione Guarantee, an online marketplace turned hub for illicit activities. Additionally, in August, another 500 BTC was moved to multiple wallets.
So far, all efforts to recover the stolen assets have failed.
DMM Bitcoin becomes the latest Asian exchange to wind down its operations in 2024. WazirX, an Indian-origin exchange, has halted its operations in July after a $235 million hack of its hot wallet.
In October, it was revealed that over a dozen South Korean crypto exchanges had shut down in 2024 after failing to comply with local regulations. On Oct. 11, the Singapore-based Fairdesk exchange also cited regulatory challenges before announcing plans to shut down shop.
