DMM Bitcoin Liquidation: The Company Transfers User Funds to SBI VC Trade
After failing to retrieve $320 million in Bitcoin due to a private key hack in May, the Japanese cryptocurrency exchange DMM Bitcoin is preparing to liquidate. Nikkei Asia initially reported on Dec. 2 that the cryptocurrency exchange is stopping its efforts to restructure its operations and plans to move user funds to SBI VC Trade, an exchange operator within SBI Group, perhaps in March. A basic agreement between the two businesses has been reached for SBI to accept the transfer of all accounts and deposit assets, according to a statement that was made public.
Under this agreement, customer deposit assets (in Japanese yen and crypto assets) in accounts opened on DMM Bitcoin will be transferred to us as soon as March 2025,
statement
DMM Bitcoin Hack: How a Private Key Leak Triggered the Second-Largest Loss in Japan?
More than 4,500 Bitcoins were lost from a single wallet on May 30 due to a server breach and private key attack that the company called an unauthorized leak. The company announced at the time that all customer deposits would be fully insured, and it stopped trading, withdrawals, and the opening of new accounts.
DMM Exchange also informed customers that it would acquire funds with support from our group companies to ensure that all users were compensated by procuring an equivalent amount of Bitcoin. After the Coincheck hack in 2018, which cost $530 million, DMM suffered the second-largest loss in the region. About $35 million worth of stolen cryptocurrency was laundered to Huione Guarantee, a popular online marketplace and hub for cryptocurrency scams, according to a July analysis by blockchain expert ZachXBT.
It is suspected that Lazarus Group is behind the hack due to similarities in laundering techniques and offchain indicators,
ZachXBT
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