SBI VC Trade will acquire Japan’s DMM Bitcoin, set for liquidation after a May hack, with the deal closing by March 2025.
The exchange is expected to cease operations and transfer all assets to SBI VC Trade, a trading company owned by the SBI Group, according to a report published by Nikkei Asia. The transaction is anticipated to be finalized by March 2025.
The company has reached an agreement with the exchange and will acquire all of the Japan crypto exchange DMM Bitcoin that is slated for liquidation, according to a statement released by SBI VC Trade on December 2. The precise date of transfer will be disclosed in a forthcoming announcement.
SBI VC Trade will broaden its product line by incorporating 14 cryptocurrency trading pairs that are presently accessible on DMM Bitcoin but have not yet been supported by SBI VC Trade as part of the acquisition.
This expansion is anticipated to be finalized prior to the transfer of customer accounts and assets, guaranteeing a smooth transition for the users of the compromised exchange.
The developments are somewhat unexpected, as DMM Bitcoin had pledged to restore all users to their previous state following the May 30 incident and had initiated recovery efforts.
The second largest breach in Japan, following the $534 million Coincheck hack in 2018, was the theft of over 4,500 Bitcoin, which was valued at approximately $308 million at the time, from one of the exchange’s wallets.
The exchange had secured a 5 billion yen loan by June to support its recovery efforts. It also assured customers and regulators that it would continue to raise an additional 50 billion yen through its “group of companies” and subordinated loans. It was a component of the exchange’s strategy to raise $320 million in order to reimburse its customers.
SBI VC Trade Hack Challenges
Meanwhile, in July, the attackers, who are suspected to be the notorious Lazarus Group, were observed laundering a portion of the stolen funds through Huione Guarantee, an online marketplace that has become a center for illicit activities. Furthermore, in August, an additional 500 BTC was transferred to numerous locations.
To date, all endeavors to retrieve the plundered assets have been unsuccessful.
DMM In 2024, Bitcoin becomes the most recent Asian exchange to cease operations. In July, WazirX, an Indian-origin exchange, suspended operations following a $235 million breach of its hot wallet.
In October, it was disclosed that more than a dozen South Korean crypto exchanges had been closed in 2024 due to their failure to adhere to local regulations. The Singapore-based Fairdesk exchange also announced intentions to close its doors on Oct. 11, citing regulatory challenges.
