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In a significant shakeup within Japan’s cryptocurrency landscape, DMM Bitcoin, once a burgeoning crypto exchange, has announced its closure following a devastating security breach.

Back in May 2024, DMM Bitcoin suffered what has been termed as one of Japan’s largest crypto leaks, with hackers making off with over 4,500 Bitcoin, valued at approximately $320 million at the time of the incident.

This breach led to a domino effect of service restrictions, ultimately culminating in the decision to wind down operations.

The hack, initially described by DMM Bitcoin as an “unauthorized leak,” was later traced to a server breach and a private key hack.

The breach was particularly damaging due to its scale; cyber attackers managed to siphon off more than 4,502.9 BTC from a single wallet, leading to a temporary halt in all services including withdrawals, new account openings, and trading.

The aftermath saw DMM Bitcoin grappling with recovery efforts, promising full compensation for customer deposits through the support of its parent company and other group firms.

However, things have taken an unexpected turn after the National Police Agency of Japan on Tuesday, December 24, 2024, linked the hack to the notorious North Korean hacking group TraderTraitor.

The National Police Agency of Japan stated that the fraudulent transfer of crypto assets from a cold wallet developed and provided by Ginco Inc., which DMM Bitcoin used, was carried out by TraderTraitor, a cyber attack group backed by North Korea.

SBI VC Trade, a subsidiary of the financial conglomerate SBI Holdings, will acquire DMM Bitcoin’s customer accounts and assets.

This acquisition, scheduled to be finalized on Saturday, March 8, 2025, marks a strategic move by SBI to expand its footprint in Japan’s crypto market while offering a lifeline to DMM Bitcoin’s affected user base.

Following the acquisition, SBI VC Trade has assured that all customer assets, including both fiat and crypto, will be safeguarded during this transition.

The acquisition includes plans for SBI VC Trade to start handling 14 cryptocurrency trading pairs not previously supported by them, which were available on DMM Bitcoin.

This expansion aims to ensure a seamless transition for DMM’s customers, maintaining the diversity of trading options they were accustomed to.

This deal will not only facilitate the recovery for DMM users but also strengthen SBI’s position in the cryptocurrency trading sector, which is still reeling from the effects of the hack.

The move is seen by many as a bullish sign for crypto investors in Japan, providing a sense of stability after a tumultuous period.

This acquisition by SBI VC Trade, while it marks the closure of DMM Bitcoin, opens a new chapter in Japan’s crypto narrative, emphasizing the importance of robust security measures and the potential for recovery and growth even in the wake of significant setbacks.

It not only salvages the situation for DMM Bitcoin’s users but also signals a potential uptick in consolidation within the Japanese crypto market, where security and trust remain paramount.

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