SBI VC Trade, a prominent Japanese crypto finance firm, has stepped in to rescue DMM Bitcoin, following the latter’s inability to recover from a devastating $320 million hack in May 2024. The transition is set to take effect in March 2025, marking a major development in Japan’s cryptocurrency ecosystem.
Customer Transition Without Hassle
SBI VC Trade announced on December 25 that it would acquire all assets and accounts of DMM Bitcoin, ensuring a smooth transition for affected customers. According to the firm, DMM users will not need to open new accounts, as SBI will automatically set them up for the migration, which is scheduled for March 8, 2025.
This decision follows DMM Bitcoin’s earlier announcement to liquidate its operations due to the financial toll of the hack, which compromised wallets holding 4,500 Bitcoin.
SBI’s X post was translated into English from Japanese. Source: SBI VC Trade
The breach occurred on May 30, 2024, when attackers accessed DMM Bitcoin’s servers and stole private keys to its wallets. Within hours, the criminals transferred $320 million worth of Bitcoin to external accounts. DMM Bitcoin committed to reimbursing customers, but the scale of losses forced the exchange to seek a partner for continuity.
North Korean Cybercrime Group Implicated
Investigations by the FBI, Japan’s National Police Agency, and the Department of Defense Cyber Crime Center (DC3) traced the attack to a North Korean cybercrime group, TraderTraitor.
The group employed a sophisticated multi-stage strategy, initially targeting an employee at Ginco, a crypto wallet software provider, with a phishing scheme on LinkedIn. The employee unwittingly uploaded a malicious script to their GitHub repository, which TraderTraitor later exploited.
In May, the attackers used the compromised communication channels to manipulate transaction requests from DMM Bitcoin, enabling the heist.
Rising Threats to Centralised Crypto Platforms
The DMM Bitcoin hack is one of the largest crypto thefts of 2024, alongside a $235 million hack on India-based WazirX. Blockchain security firm Hacken reported that losses from centralised crypto service attacks more than doubled this year, reaching $694 million.
The incident highlights the persistent vulnerabilities in crypto exchanges and the need for enhanced security measures to safeguard digital assets.
Looking Ahead
SBI VC Trade’s acquisition offers a lifeline to DMM Bitcoin’s customers, ensuring continuity and restoring confidence in Japan’s crypto sector. However, the broader industry must address escalating cybersecurity threats to avoid similar crises in the future.
