SBI VC trade to acquire Japan’s DMM Bitcoin following May hack

Japanese cryptocurrency exchange DMM Bitcoin has reportedly halted all efforts to restart its hacked trading platform, despite launching recovery plans.

According to a Nikkei Asia report, the exchange will cease its operations and sell all its assets to SBI VC Trade, a trading company owned by SBI Group, and the sale is expected to be completed by March 2025.

A statement released by SBI VC Trade on December 2 confirmed that the company has reached an agreement with the exchange and will acquire all-Japan crypto exchange DMM Bitcoin for liquidation. The exact transfer date will be announced in the next announcement.

As part of the acquisition, SBI VC Trade will expand its offering by offering 14 cryptocurrency trading pairs that are currently available on DMM Bitcoin but are not yet supported by SBI VC Trade. This expansion is planned to be completed before customer accounts and assets are transferred, ensuring a smooth transition for users of the hacked exchange.

These developments are somewhat unexpected, considering that DMM Bitcoin launched recovery efforts after the May 30 incident and promised to bring all users together.

More than 4,500 Bitcoins, worth about $308 million at the time, were emptied from one of the exchange’s wallets, making it the second-largest hack in Japan after the $534 million Coincheck hack in 2018.

By June, the exchange secured 5 billion yen in loans to aid recovery efforts, while assuring customers and regulators that it would raise an additional 50 billion yen through “conglomerate” and subordinated loans. This was part of the exchange’s plans to raise $320 million to refund customers.

Meanwhile, in July, attackers suspected to be the infamous Lazarus Group were found to have laundered some of the stolen funds through Huione Guarantee, an online marketplace that has become a hub of illicit activities. Additionally, another 500 BTC was moved to multiple wallets in August.

All efforts to recover the stolen assets have so far failed.

DMM Bitcoin has become the latest Asian exchange to cease operations in 2024. Indian exchange WazirX ceased operations in July after its hot wallet was hacked worth $235 million.

In October, it was revealed that more than a dozen South Korean crypto exchanges were shut down in 2024 after failing to comply with local regulations. On October 11, Singapore-based Fairdesk exchange also cited regulatory challenges before announcing plans to close shop.