As a seasoned researcher with a keen interest in the dynamic world of cryptocurrencies, I find myself intrigued by the latest development involving SBI VC Trade and DMM Bitcoin. The forthcoming transfer of accounts and assets on March 8, 2025, marks a significant chapter in the annals of crypto exchange history, especially considering the tumultuous journey DMM Bitcoin has been through following the devastating $305 million hack in May 2024.
The cryptocurrency-centric division of SBI Holdings, known as SBI VC Trade, is poised to take over the customer accounts and assets from troubled crypto exchange DMM Bitcoin.
The transfer is scheduled for March 8, 2025, signifying the end of DMM Bitcoin’s liquidation following a disastrous hack that occurred in May 2024, resulting in losses amounting to $305 million.
Liquidation and Transfer Process
In a notice dated December 25th, the SBI VC announced that customer accounts would be prepared for transfer by the specified date. The customers won’t need to re-register, instead, they will be effortlessly transitioned by the company itself. Both traditional and digital currencies belonging to previous DMM users will be moved to SBI, with the company taking over records of all transactions made on the defunct exchange.
As a researcher, I find myself in the privileged position of reporting an expansion in our Tokyo-based firm’s digital asset trading offerings. Initially, we provided trades for 24 virtual assets. However, following our acquisition of DMM Bitcoin, our platform is now set to host an additional 14 cryptocurrencies, such as Tron (TRX), The Sandbox (SAND), Algorand (ALGO), and Maker (MKR). This diversification not only bolsters our portfolio but also opens up new possibilities for our users.
Furthermore, under this agreement, SBI will assume control over all leveraged trading pairs that were provided by DMM, with the exception of those that SBI currently offers. Notably, the company has stated that it will not transfer any ongoing positions related to leveraged trading.
According to the announcement, the process of automatically locking up stocks will take place, and those who owned Ethereum (ETH), Avalanche (AVAX), Oasys (OAS), Flare (FLR), and Hedera (HBAR) through DMM are eligible for this automatic staking on SBI. If they keep holding these assets, they can anticipate receiving their initial staking rewards in April 2025.
Hacking Fallout
DMM Bitcoin, following unsuccessful attempts to recover from a massive cyber attack that occurred in late May, has decided to cease operations. This unfortunate event resulted in the platform losing over 4,500 Bitcoins, approximately equivalent to $305 million. This incident marks Japan’s second-largest cryptocurrency breach, only surpassed by another exchange, Coincheck, which suffered a loss of around $523 million worth of NEM tokens in an event that took place in 2018.
It’s believed that the DMM hack was orchestrated by cybercriminals connected to North Korea, referred to as TradeTraitor. In July, it was disclosed that approximately $35 million stolen from a cryptocurrency exchange was laundered through the well-known Cambodian online marketplace, Huione Guarantee, infamous for its money laundering activities.
At that point, the anonymous on-chain investigator ZachXBT compared the laundering methods to those employed by another group linked to North Korea, specifically the infamous Lazarus Group.
Immediately following the exploitation, DMM vowed to compensate any affected customers in full. Despite taking a loan of 50 million yen to reimburse users, the harm to its operations was excessive, ultimately leading to the decision to transfer all assets over to SBI VC Trade.
In a declaration made on December 2nd, the company affirmed the purchase, emphasizing their commitment to facilitating a seamless transition for their clients.
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2024-12-27 01:28