Japanese Crypto Exchange to Shut Down After $320 Million Hack

DMM Bitcoin, a Japanese crypto exchange, is shutting down after failing to recover from a May hack that saw over $320 million in Bitcoin stolen.

The company plans to transfer customer accounts and assets to SBI VC Trade, part of SBI Group, by March 2025.

The attack exploited private key vulnerabilities, leading to the theft of over 4,500 Bitcoin. DMM initially promised full compensation but was unable to sustain operations despite support from its parent company. The incident, linked to the Lazarus Group by blockchain investigator ZachXBT, involved laundering activities on suspicious platforms.

This marks one of Japan’s largest crypto heists since the 2018 Coincheck breach. DMM also recently abandoned its Web3 gaming initiative, Seamoon Protocol, citing unfavorable market conditions.

The closure highlights a challenging year for exchanges, with major hacks affecting platforms like WazirX and BingX, resulting in hundreds of millions of dollars in combined losses.