Following the completion of the asset transfer to SBI VC Trade, the Japanese crypto exchange declared its intention to cease operations.
DMM Bitcoin, a Japanese cryptocurrency exchange, will cease operations as a consequence of a May breach that resulted in losses exceeding $300 million.
In accordance with its Monday announcement, SBI VC Trade, the cryptocurrency division of the Japanese financial conglomerate SBI Group, will acquire the exchange’s assets.
On Monday, DMM Bitcoin announced that it had reached an agreement with SBI to transition customer accounts and custodial assets to the latter by approximately March 2025, as per an English translation of a Japanese statement. The exchange also noted that open positions in leveraged trading are not included in the transfer and must be settled prior to the transfer.
The impending closure of DMM Bitcoin is the result of a security compromise that occurred in May. The exchange reported that 4,502.9 BTC, which was approximately $306 million at the time, had been taken.
The company reported that it had secured approximately 55 billion yen ($365.1 million) in June through a variety of funding initiatives. On June 3, it obtained 5 billion yen ($33.2 million) through borrowing, and on June 7, it raised 48 billion yen ($318.6 million) through a capital increase. On June 10, DMM Bitcoin acquired an additional 2 billion yen ($13.3 million) through subordinated borrowing, which was the final tranche.
The statement indicates that DMM Bitcoin intends to terminate operations upon the conclusion of the asset transfer.
On Monday, SBI VC Trade disclosed its intention to commence spot trading for 14 cryptocurrencies that are presently traded on DMM Bitcoin prior to concluding the transfer of custodial assets.
Also Read: South Korea’s Democratic Party delays crypto tax by 2 years
Wallets