Key Takeaways
- DMM customers will have their accounts transferred to SBI’s platform by March 8, 2025.
- DMM Bitcoin users will not need to create new accounts, as SBI will automatically establish accounts for them
Japanese financial services firm SBI VC Trade has announced plans to acquire the remaining assets and user accounts of the crypto exchange DMM Bitcoin. This move follows DMM Bitcoin’s decision to cease operations after suffering a $320 million hack in May. The agreement between the two firms ensures a continuation of services for DMM Bitcoin customers, who will have their accounts transferred to SBI’s platform by March 8, 2025.
DMM Bitcoin confirmed earlier this year that it could not recover from the financial blow caused by the attack, in which 4,500 Bitcoin were stolen after attackers breached its servers and accessed wallet keys. The company committed to reimbursing affected customers but ultimately decided to liquidate and transfer its assets to SBI VC Trade.
As per SBI’s latest statement, DMM Bitcoin users will not need to create new accounts, as SBI will automatically establish accounts for them as part of the transition.
However, there are notable differences between the services offered by the two platforms. SBI VC Trade does not currently provide leveraged trading or crypto-to-crypto exchange services, which were available on DMM Bitcoin. Additionally, unsettled leveraged trading positions from DMM users will not be accepted.
The hack, which occurred on May 30, was linked to the North Korea-based hacking group TraderTraitor. A recent Chainalysis report revealed that in 2024, North Korea-affiliated hackers stole $1.34 billion across 47 incidents.
A joint investigation by the FBI, Japan’s National Police Agency, and the Department of Defense Cyber Crime Center revealed that the attackers used a sophisticated phishing scheme to gain access to DMM Bitcoin’s wallet management systems.
The breach began with a targeted attack on an employee at Ginco, a Japanese crypto wallet management company that maintained software for DMM Bitcoin. The hackers, posing as recruiters on LinkedIn, sent the employee a malicious script disguised as a pre-employment test. The employee unknowingly uploaded the script to their GitHub page, which the attackers exploited to access the wallet systems.
The attackers then gained control of DMM Bitcoin’s communications, using this access to manipulate a transaction request and steal the Bitcoin. The stolen funds were quickly moved, making recovery efforts unsuccessful.
While SBI VC Trade has committed to taking on DMM Bitcoin’s customer accounts and assets, it has also acknowledged the challenges in replicating all of DMM’s services. The company aims to support additional crypto products currently offered by DMM Bitcoin but has indicated that these features may not be available by the March transfer date.
