Japanese Crypto Exchange to Shut Down After $300M Hack, Transfer Accounts to SBI

Japanese crypto exchange DMM Bitcoin plans to cease operations by March 2025, transferring customer accounts and custodial assets to SBI VC Trade, the crypto arm of financial giant SBI Holdings, according to a statement Monday.

The closure comes months after DMM Bitcoin disclosed a $305 million loss due to a cyberattack that resulted in the theft of 4,502.9 Bitcoin (BTC).

The breach prompted the suspension of spot trading and withdrawal services, significantly impairing the platform’s operations.

DMM Bitcoin said it will announce further details regarding the transfer process, including the exact migration timeline and steps for customers, “as soon as they are determined.”

Customers with leveraged trading positions must close those positions before the transfer, as they will not be included in the migration, the company added.

As part of the transition, SBI VC Trade will begin supporting spot trading for 14 cryptocurrencies currently available on DMM Bitcoin.

The announcement underscores ongoing challenges in Japan’s cryptocurrency market, where security breaches have prompted regulatory scrutiny and consolidation. 

SBI VC Trade, which operates under the umbrella of one of Japan’s largest financial groups, is expected to absorb DMM Bitcoin’s customer base and assets, potentially strengthening its position in the domestic market.

DMM Bitcoin did not immediately respond to a request for comment.

The exchange’s shutdown reflects the lasting impact of the May cyberattack, which was one of the largest in the Japanese crypto industry this year. 

At the time, DMM Bitcoin halted all transactions and withdrawals to contain further losses but has struggled to recover fully.

The migration marks a notable consolidation in the industry, with SBI VC Trade poised to expand its footprint by inheriting DMM Bitcoin’s customers and infrastructure.

Edited by Sebastian Sinclair