In summary
- DMM Bitcoin will cease operations in March 2025, transferring accounts and assets to SBI VC Trade following a cyberattack that resulted in losses of $305 million.
- The attack, which compromised 4,502.9 BTC, led to the suspension of key services and significantly affected the viability of DMM Bitcoin.
- SBI VC Trade will take over spot trading for 14 DMM Bitcoin cryptocurrencies, consolidating its position in the Japanese crypto market.
Japanese Cryptocurrency exchange DMM Bitcoin plans to cease operations by March 2025, transferring client accounts and assets under custody to SBI VC Trade, the crypto division of financial giant SBI Holdings, according to a statement on Monday.
The shutdown comes months after DMM Bitcoin revealed a $305 million loss due to a cyberattack that resulted in the theft of 4,502.9 Bitcoin (BTC).
The breach caused the suspension of spot trading services and withdrawals, significantly harming the platform’s operations.
DMM Bitcoin said it will announce more details about the transfer process, including the exact migration timeline and steps for customers, “as soon as they are determined.”
Clients with leveraged trading positions should 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 sparked 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 client and asset base, potentially strengthening its position in the domestic market.
DMM Bitcoin did not immediately respond to a request for comment.
The exchange’s closure reflects the lasting impact of the May cyberattack, which was one of the largest in the Japanese crypto industry this year.
At that time, DMM Bitcoin stopped all transactions and withdrawals to contain further losses, but has struggled to fully recover.
The migration marks a notable consolidation in the industry, with SBI VC Trade positioned to expand its presence by inheriting DMM Bitcoin’s clients and infrastructure.
Edited by Sebastian Sinclair
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