Japanese Exchange DMM Bitcoin to Close After $320M Hack: Customer Assets to Move
DMM Bitcoin will be shutting down after a private key breach in May 2024 resulted in a $320 million loss.
The exchange, which launched in 2018 under the DMM Group, will transfer all customer accounts and assets to SBI VC Trade, operated by SBI Group. The transfer will be completed by March 2025.
The hack, which DMM Bitcoin calls an “unauthorised leak”, resulted in 4,500+ Bitcoin stolen. They initially said they would compensate users, but couldn’t recover and are now shutting down. Customer JPY and cryptocurrency deposits will be safe during the transfer, according to the statement.
Details of the $320M Breach
The May 30 breach targeted a private key of a major Bitcoin wallet. Despite telling customers they would compensate, DMM Bitcoin had to suspend withdrawals, new registrations and trading. This is one of the biggest crypto hacks in Japan, second only to the $530 million Coincheck hack in 2018.
Blockchain analyst ZachXBT linked the attack to the Lazarus Group, a North Korean cybercrime syndicate. $35 million of the stolen funds went to shady platforms like Huione Guarantee.
And to make things worse, DMM Bitcoin stopped their Seamoon Protocol and postponed the stablecoin with Progmat due to unstable business environment.
Centralized Exchanges Face Growing Threats
The DMM Bitcoin hack is part of a growing trend of attacks on centralised exchanges. In 2024 so far:
$235 million hack at India’s WazirX in July.
$52 million exploit at Singapore’s BingX in September.
$55 million loss at Turkey’s BtcTurk in June.
In addition, Seychelles-based XT.com suspended withdrawals in November following a $1.7 million theft.
U.S. federal prosecutors also charged five individuals last week for a hacking operation that stole $11 million in crypto and sensitive data across multiple countries, further highlighting the vulnerability of centralized platforms.
ABOUT THE AUTHOR
See More
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals
Top Broker