DMM Bitcoin Set for Liquidation after $320 Million Hack

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As a researcher with years of experience in the cryptocurrency industry, I have seen my fair share of ups and downs. The closure of DMM Bitcoin is yet another reminder of the risks associated with this burgeoning field.

After experiencing a massive hack resulting in losses amounting to approximately $320 million, the Japanese cryptocurrency exchange DMM Bitcoin has decided to shut down permanently. For several months, the company had been striving to recover customer assets, but now they are transferring accounts over to SBI Virtual Currencies Trade.

It’s likely that the Lazarus Group, a cybercrime organization based in North Korea, was behind the recent hacking incident. Consequently, Japanese financial authorities have advised other digital currency exchanges to tighten their security protocols.

DMM Bitcoin to Close

As reported by The Nikkei, DMM Bitcoin, a digital currency exchange based in Japan, is facing liquidation. This move follows a cyber attack that occurred several months ago, which resulted in a loss of approximately $320 million and significantly impacted the platform’s operations. Interestingly, the company’s social media accounts and blog do not seem to acknowledge this closure, and it appears that the blog is currently offline.

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

For your security and peace of mind, we’ve chosen to move all your accounts and holdings currently with us to another firm. We deeply regret any trouble this transition may cause you, especially over such an extended period. Once this process is finished, our company will cease operations.” – DMM Bitcoin, in a statement released externally.

Simply put, the decision to close was indeed challenging. Even after the significant hack in May, DMM Bitcoin made every effort to stay financially stable. For instance, they held a fundraiser in June to return the stolen users’ funds. However, the outcome of this attempt remains uncertain. Ultimately, they decided to discontinue the effort and transfer their remaining assets to SBI VC Trade, a trading platform operator.

Following the cyber-attack, well-known cryptocurrency investigator ZachXBT pointed fingers at Lazarus Group, a suspected North Korean hacking organization, as possible culprits. ZachXBT found that approximately $35 million from the attack was funneled through a Cambodian money laundering operation and uncovered solid proof of Lazarus’ role. However, DMM Bitcoin did not seem to reap significant advantages from this information.

Despite a decrease in crypto hacks, criminals continue to execute complex and effective schemes. Therefore, it’s crucial to only utilize reliable and secure cryptocurrency platforms, a requirement that remains just as important today as it was before the recent shutdown of DMM Bitcoin. Japanese financial authorities issued warnings to other exchanges about the importance of supervision and registration within the past week prior to DMM Bitcoin’s closure.

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2024-12-04 08:23