DMM Bitcoin to liquidate after $320 million Bitcoin hack loss

DMM Bitcoin, a Japanese cryptocurrency exchange, is reportedly preparing to liquidate after suffering a $320 million loss due to a private key hack in May.

The exchange is also halting efforts to recover and revamp its operations, according to a report by Nikkei Asia on Dec. 2.

The company intends to transfer customer assets to SBI VC Trade, a subsidiary of SBI Group, by March.

The hack, which occurred on May 30, compromised DMM Bitcoin’s server and led to the theft of over 4,500 Bitcoin (CRYPTO:BTC) from a single wallet.

In response, the exchange temporarily suspended withdrawals, new account openings, and trading.

DMM Bitcoin promised to fully compensate users by procuring the equivalent amount of Bitcoin, with financial assistance from its parent company, DMM Group.

The breach marked one of the largest in the region, following the $530 million Coincheck hack in 2018.

According to blockchain investigator ZachXBT, around $35 million of the stolen Bitcoin was laundered through the Huione Guarantee platform.

The hack is suspected to be the work of the Lazarus Group, a hacker group linked to North Korea, due to similarities in laundering methods and offchain indicators.

DMM Bitcoin was launched in January 2018 under the DMM Group.

In recent months, the exchange has been facing difficulties, including the discontinuation of its Seamoon Protocol, a Web3 gaming and content platform, due to changes in the business environment.

DMM Bitcoin’s struggles reflect a broader trend of hacking incidents affecting centralized exchanges in 2024.

Other exchanges like WazirX, BingX, and BtcTurk have also been targeted, with significant financial losses reported.

At the time of reporting, the Bitcoin (BTC) price was $96,685.77.