This Is Why DMM Bitcoin Closes After $305 Million Hack

Japanese crypto exchange DMM Bitcoin is finally closing after a $320 million hack. The company attempted to recover customer assets for several months but is now transferring accounts to SBI VC Trade.

Lazarus Group, a North Korean Hacker Group, was probably responsible for this hack; Japanese financial regulators warned other exchanges to enact stricter security measures.

DMM Bitcoin to Close

According to The Nikkei, DMM Bitcoin, a Japanese crypto exchange, is being liquidated. This comes several months after a $320 million hack targeted the platform, severely disrupting operations. The company’s social media accounts do not mention this closure, and its blog is apparently down.

However, DMM Bitcoin did release a statement while the blog was still live.

“With the protection of our customers as our number one priority, we have decided to transfer all accounts and assets held with us to another company. We sincerely apologize for the inconvenience caused to you over such a long period of time. As a result, the company plans to discontinue its business once the transfer is complete,” said DMM Bitcoin, quoted externally.

In other words, the closure was a difficult decision. Despite the severity of the May hack, DMM Bitcoin still attempted to remain solvent: in June, for example, the company conducted a fundraiser to recoup users’ stolen assets. Its success at this remains inconclusive. The firm abandoned the effort and will transfer its remaining assets to SBI VC Trade, an exchange operator.

After the hack, renowned crypto sleuth ZachXBT accused Lazarus Group, a North Korean hacker group, of involvement in the attack. ZachXBT traced some $35 million from this hack to a Cambodian money laundering service and discovered strong evidence of Lazarus’ involvement. Nonetheless, DMM Bitcoin did not greatly benefit from this knowledge.

Although crypto hacks are notably declining, criminals still carry out sophisticated and successful operations. The need to only use secure and trustworthy crypto exchanges is as present as ever. Japan’s financial regulators warned other Japanese exchanges about the necessity of oversight and registration less than a week before DMM Bitcoin’s closure.