DMM Bitcoin Collapses After $320 Million Hack

Japanese Crypto Exchange DMM Bitcoin has finally shut down after a $320 million hack. The company has been trying to recover client assets for several months bu...

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Japanese Crypto Exchange DMM Bitcoin has finally shut down after a $320 million hack. The company has been trying to recover client assets for several months but is now transferring accounts to SBI VC Trade.

The Lazarus Group, a group of North Korean hackers, was probably responsible for this attack; Japanese financial regulators have warned other exchanges to take stricter security measures.

DMM Bitcoin Will Close

According to The Nikkei, DMM Bitcoin, a Japanese Cryptocurrency exchange, is in the process of liquidation. This comes months after a $320 million hack targeted the platform, severely disrupting operations. The account The company’s social media did not mention the closure, and blog It seems to no longer work.

However, DMM Bitcoin spoke while this blog was still online.

“With customer protection being our top priority, we have decided to transfer all accounts and assets held by us to another company. We sincerely apologize for the inconvenience caused to you over such a long period of time. Therefore, the company intends to cease business operations once the transfer is complete,” DMM Bitcoin quoted from another source.

In other words, closing was a difficult decision. Even though the hack in May was very serious, DMM Bitcoin still managed to remain solvent: for example, in June the company organized a fundraiser to recover stolen assets of users. use. The success of this effort remains unclear. The company has abandoned the effort and will transfer its remaining assets to SBI VC Trade, an exchange operator.

Following the hack, prominent Cryptocurrency investigator ZachXBT accused the Lazarus group, a group of North Korean hackers, of being involved in the attack. ZachXBT traced approximately $35 million from this hack to a money laundering service in Cambodia and discovered strong evidence of Lazarus’ involvement. However, Bitcoin DMM does not benefit greatly from this knowledge.

Although Cryptocurrency hacks are decreasing significantly, criminals still carry out complex and successful operations. The need to only use safe and trustworthy Cryptocurrency exchanges remains as present as ever. Japanese financial regulators warned other Japanese exchanges about the need for supervision and registration less than a week before the Bitcoin DMM closed.