As a seasoned researcher with years of experience tracking the dynamic world of cryptocurrencies and blockchain technology, I find myself both surprised and somewhat saddened by the news of DMM Bitcoin’s impending closure. The Japanese exchange, once a promising player in the crypto space, has been unable to recover from the devastating hack that occurred back in May 2021.
It’s reported that DMM Bitcoin, a Japanese cryptocurrency exchange, has decided against resuming attempts to reopen its hacked trading platform, even though they had initially started recovery measures.
As per a Nikkei Asia article, the platform is planning to close its business and transfer all its assets to an SBI Group-affiliated trading company named SBI VC Trade. The deal, projected to be finalized by March 2025, will mark the end of the platform’s operations.
According to a statement issued on December 2nd, SBI VC Trade has reached an agreement to purchase the entire Japan-based cryptocurrency exchange, DMM Bitcoin, which is currently facing liquidation. The exact date of the transfer will be announced at a later time.
In the process of taking over, SBI VC Trade plans to broaden its services by adding 14 cryptocurrency trading options that are currently available on DMM Bitcoin but not yet offered by SBI VC Trade. This expansion is aimed to be finished before the transfer of customer accounts and assets, ensuring a smooth transition for users of the hacked exchange, as their needs will already be catered to.
Unexpectedly, the recent events transpired despite DMM Bitcoin’s attempts at recovery following the May 30 occurrence and their assurance of restoring all affected users’ accounts.
Approximately 4,500 Bitcoins, worth around $308 million at that moment, were stolen from one of the exchange’s digital wallets, making it the second largest cyber theft of Bitcoin in Japan, surpassed only by the $534 million hack on Coincheck in 2018.
By June, the platform successfully obtained a loan worth 5 billion yen, intended for its revival process. This was accompanied by promises to both clients and authorities that it would gather an extra 50 billion yen, through its “group of companies” and subordinated loans. Part of this fundraising effort was aimed at amassing $320 million to repay its customers.
During July, it’s believed that the infamous Lazarus Group carried out money laundering with some of the stolen funds through Huione Guarantee, a platform initially designed for online transactions that later became a center for illicit activities. Furthermore, in August, an additional 500 BTC was transferred to various digital wallets.
So far, all efforts to recover the stolen assets have failed.
2024 sees DMM Bitcoin, the most recent Asian cryptocurrency exchange, shutting down its activities. In contrast, WazirX, a platform with Indian roots, ceased operations in July following a $235 million theft from its hot wallet.
Back in October, news broke out that more than a dozen cryptocurrency exchanges based in South Korea had closed their operations in the year 2024 due to non-compliance with local laws. On the 11th of October, Fairdesk, an exchange based in Singapore, too, mentioned regulatory difficulties as the reason for their decision to cease their business.
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2024-12-02 10:26