Japan crypto exchange DMM Bitcoin is set to liquidate: Report

DMM Bitcoin Reportedly Preparing for Liquidation After $320 Million Hack

Japanese cryptocurrency exchange DMM Bitcoin is reportedly planning to liquidate following a $320 million Bitcoin loss in a private key hack in May. The company has been unable to recover from the incident.

Nikkei Asia reported on December 2 that DMM Bitcoin is also ceasing efforts to revamp operations and intends to transfer customer assets to SBI VC Trade, an exchange operator under SBI Group, around March. The source for this information was not disclosed.

$320M Stolen in May Hack

DMM Bitcoin suffered a server breach and private key hack on May 30. The company referred to the incident as an "unauthorized leak," resulting in the loss of over 4,500 Bitcoin (BTC) from a single wallet.

At the time, the firm assured users that all deposits were "fully guaranteed" and halted withdrawals, new account openings, and trading. DMM also promised to acquire funds to compensate users, with support from its group companies.

The DMM hack was the second-largest in the region, following the $530 million Coincheck hack in 2018.

In July, blockchain detective ZachXBT reported that around $35 million of the stolen crypto had been laundered to the online marketplace and crypto scam hotbed Huione Guarantee.

DMM Exchange Background

DMM Bitcoin was launched in January 2018 and is owned by the Japanese e-commerce conglomerate DMM Group.

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