Japanese crypto exchange DMM Bitcoin, which fell victim to a $320 million hack in May, is transferring its assets and customer accounts to SBI VC Trade. The transition will be completed by March 8, 2025, marking the end of DMM’s operations.

SBI to Absorb DMM Bitcoin Accounts

SBI VC Trade announced on Dec. 25 that it had finalized a deal to take over DMM Bitcoin’s customer accounts and assets. To streamline the transition, SBI will automatically create accounts for DMM customers, eliminating the need for users to manually open new accounts.

This arrangement comes after DMM Bitcoin’s inability to recover from the May breach, where 4,500 Bitcoin were stolen. The firm decided to liquidate and transition its operations to SBI as a resolution for affected customers.

The $320 Million Hack

On May 30, DMM Bitcoin suffered a major breach when attackers accessed its servers and stole private keys to wallets containing Bitcoin worth $320 million. The stolen funds were swiftly moved by the perpetrators. Despite the breach, DMM pledged to fully reimburse its customers for their losses.

The attack is one of the largest crypto heists of 2024, alongside the $235 million hack of India-based exchange WazirX.

North Korea-Linked Group Behind the Heist

Investigations by the FBI, Japan’s National Police Agency, and the Department of Defense Cyber Crime Center revealed that the attack was carried out by TraderTraitor, a North Korean-linked crime group.

The group targeted an employee at Ginco, a Japanese firm managing wallet software for DMM. By posing as a recruiter on LinkedIn, the threat actor tricked the employee into executing a malicious script disguised as a pre-employment test. The script, uploaded to the employee’s GitHub page, was exploited to breach DMM’s wallet management system.

TraderTraitor later impersonated the Ginco employee to manipulate transaction requests, facilitating the theft of 4,500 Bitcoin.

Rising Threats to Centralized Crypto Platforms

The DMM Bitcoin hack highlights the growing vulnerabilities of centralized crypto platforms. Blockchain security firm Hacken reported that losses from attacks on centralized crypto services more than doubled in 2024, reaching $694 million.

Hacken cited the DMM hack and the WazirX breach as the year’s most significant incidents, emphasizing the need for stronger security measures in the industry.

As the crypto market matures, the industry faces increasing pressure to fortify its defences against sophisticated cyberattacks. For now, DMM Bitcoin’s customers can look forward to a smooth transition to SBI, which has committed to safeguarding their assets.