Massive Cyberattack Prompts Shutdown
Japanese crypto exchange DMM Bitcoin will cease operations by March 2025, following a $305 million cyberattack earlier this year. The breach resulted in the theft of 4,502.9 BTC, forcing the suspension of spot trading and withdrawal services and severely hampering the platform's ability to operate.Accounts to Transfer to SBI VC Trade
To mitigate the impact on users, DMM Bitcoin will transfer customer accounts and custodial assets to SBI VC Trade, the crypto arm of financial giant SBI Holdings. The migration process will include 14 cryptocurrencies currently supported on DMM Bitcoin. Customers with leveraged trading positions must close them before the transfer as they are not included in the migration.Strengthening SBI VC Trade’s Market Position
This move positions SBI VC Trade, already operating under one of Japan's largest financial groups, to absorb DMM Bitcoin's customer base and assets. The transfer underscores ongoing consolidation in Japan’s crypto market amid heightened regulatory scrutiny following repeated security breaches.Lasting Impact of the Hack
The May cyberattack, one of the largest in Japan’s crypto industry this year, dealt a critical blow to DMM Bitcoin, forcing the platform to halt all transactions and withdrawals. Despite attempts to recover, the exchange has struggled to regain stability, ultimately deciding to shut down.Looking Ahead
As the Japanese crypto market faces ongoing challenges, the consolidation marks a strategic shift for SBI VC Trade, potentially expanding its domestic influence and addressing growing security concerns in the sector. Further details regarding the migration timeline and process are expected to be announced soon.
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