DMM Bitcoin Announce the Transfer of Customers’ Accounts and Assets for Custody
Existing DMM Bitcoin customers won't need to open new accounts with SBI VC Trade; we will create their accounts automatically.
On December 26, 2024, DMM Bitcoin Co., Ltd. published a notice outlining the agreement to transfer accounts and deposit assets to SBI VC Trade.
The agreement marks a significant development following DMM Bitcoin’s cessation of operations and subsequent liquidation, precipitated by a substantial cyberattack.
Transfer Agreement after Cyberattack
The agreement, finalized between DMM Bitcoin and SBI VC Trade, a Japanese cryptocurrency exchange owned by SBI Holdings, ensures the smooth transition of DMM Bitcoin customer accounts and assets. The scheduled transfer date is March 8th, 2025.
Existing DMM Bitcoin customers won’t need to open new accounts with SBI VC Trade; we will create their accounts automatically. This streamlined process aims to minimize disruption for affected users.
While the transfer aims for seamless continuity, differences exist between the services offered by the two platforms. SBI VC Trade intends to expand its services to accommodate DMM Bitcoin’s offerings. Specifically, SBI VC Trade plans to add support for fourteen cryptocurrencies currently unavailable on its platform but supported by DMM Bitcoin.
However, note that we cannot guarantee the availability of these expanded services by the March 8th transfer date. Furthermore, SBI VC Trade explicitly states it will not offer crypto-to-crypto exchange services or leveraged trading, features previously available on DMM Bitcoin. DMM Bitcoin will not transfer unsettled leveraged trading positions.
DMM Bitcoin Security Breach of $320 Million
The background to this transfer is the significant security breach suffered by DMM Bitcoin in May 2024. This breach resulted in the theft of over 4,500 Bitcoins, amounting to approximately $320 million USD.
Moreover, the attack involved the compromise of server access and the theft of private keys, enabling the perpetrators to access and drain the exchange’s wallets. This incident ranks among the largest cryptocurrency exchange heists globally, second only to the Coincheck hack in Japan’s history.
Recent investigations by the FBI, the Department of Defense Cyber Crime Center (DC3), and Japan’s National Police Agency have attributed the attack to the North Korea-linked criminal group, TraderTraitor. This attribution highlights the sophisticated nature of the attack and the ongoing threat posed by state-sponsored cybercrime to the cryptocurrency industry.
