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Update (Dec. 2 at 5:30 am UTC): This article has been updated to include a statement from SBI VC. 
Japanese cryptocurrency exchange DMM Bitcoin is prepping to liquidate after losing $320 million in Bitcoin in a private key hack in May from which the company has failed to recover.
The crypto exchange is ceasing efforts to revamp operations and intends to transfer customer assets to SBI VC Trade, an exchange operator under SBI Group, around March, Nikkei Asia first <a data-ct-non-breakable="null" href="https://asia.nikkei.com/Spotlight/Cryptocurrencies/Japan-crypto-exchange-DMM-Bitcoin-set-for-liquidation" rel="null" target="null" text="null" title="https://asia.nikkei.com/Spotlight/Cryptocurrencies/Japan-crypto-exchange-DMM-Bitcoin-set-for-liquidation">reported</a> on Dec. 2.
According to a translation of a statement <a data-ct-non-breakable="null" href="https://www.sbivc.co.jp/newsview/1zkj8mf5x3y" rel="null" target="null" text="null" title="null">released</a> on Dec. 2, a basic agreement between the two companies has been made for SBI to accept the transfer of all accounts and deposit assets.
“Under this agreement, customer deposit assets (in Japanese yen and crypto assets) in accounts opened on DMM Bitcoin will be transferred to us as soon as March 2025,” it read. SBI VC Trade will also handle the transfer of crypto stocks held on DMM Bitcoin, it added. 
<h2 id="320-million-stolen-in-may-hack">$320 million stolen in May hack</h2>
DMM Bitcoin was <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/japanese-exchange-dmm-loses-bitcoin-private-key-hack" rel="null" target="null" text="null" title="null">compromised</a> on May 30 in a server breach and private key hack, which the company referred to as an “unauthorized leak,” resulting in the loss of more than 4,500 Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) from a single wallet.&nbsp;
At the time, the firm said that all user deposits “will be fully guaranteed,” as it halted withdrawals, new account openings and trading.&nbsp;
DMM exchange also told customers that it would “procure the equivalent amount of BTC” to make sure that all users were compensated, acquiring funds “with support from our group companies.”
DMM’s loss was the second-largest in the region, following the $530 million <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/japan-coincheck-exchange-freezes-all-withdrawals-as-up-to-723-mln-leaves-its-wallet" rel="null" target="null" text="null" title="null">Coincheck hack</a> in 2018.&nbsp;
In July, blockchain sleuth ZachXBT <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/lazarus-group-suspected-moving-stolen-funds-dmm-bitcoin-hack" rel="null" target="null" text="null" title="null">reported</a> that about $35 million of the stolen crypto had been laundered to the online marketplace and <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/pig-butchering-crypto-scams-how-to-combat-them" rel="null" target="null" text="null" title="null">crypto scam</a> hotbed <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/elliptic-exposes-11b-scam-network-via-huione-guarantee" rel="null" target="null" text="null" title="null">Huione Guarantee</a>.&nbsp;
<figure>
 <img alt="Japan, Cryptocurrency Exchange, Hacks" src="https://s3.cointelegraph.com/uploads/2024-12/0193857a-bd56-799c-945e-ad9bb2cbcb5c" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/zachxbt/status/1812466959109521649" rel="null" target="null" text="null" title="null">ZachXBT</a>
 </figcaption>
</figure>
“It is suspected that Lazarus Group is behind the hack due to similarities in laundering techniques and offchain indicators,” he said at the time.&nbsp;
DMM exchange was launched in January 2018 and is owned by the Japanese e-commerce conglomerate DMM Group.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/chainalysis-crypto-hack-ransom-rise-2024" rel="null" target="null" text="null" title="null">Chainalysis alerts rise in crypto hacks and ransom in 2024</a>
In November, DMM Crypto announced that it was <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/dmm-crypto-discontinues-seamoon-protocol" rel="null" target="null" text="null" title="null">discontinuing</a> its Seamoon Protocol. The Seamoon Portal was a Web3 gaming and content site that featured games and anime produced by the exchange’s parent firm, DMM.com.
DMM Crypto was working with the stablecoin platform Progmat to issue its own stablecoin to enhance the ecosystem. However, according to a translation of a statement at the time, the firm cited “recent rapid changes in the business environment” that have created challenges for the project’s sustainability.
Centralized exchange hacks have been rife in 2024. The Indian <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/indian-crypto-exchange-wazirx-hack-235m" rel="null" target="null" text="null" title="null">WazirX exchange was hacked</a> in July for $235 million, while the Singaporean BingX exchange was <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bingx-minor-loss-hack-climbs" rel="null" target="null" text="null" title="null">hacked</a> for $52 million in September, and an exploit of the Turkish BtcTurk <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/cryptocurrency-exchange-binance-btcturk-turkey-richard-teng" rel="null" target="null" text="null" title="null">hot wallet</a> resulted in losses of up to $55 million in June.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/dogecoin-porsche-solana-trader-makes-millions-zachxbt-memecoin-scam-hodlers-digest/" rel="null" target="null" text="null" title="null">Dogecoin flips Porsche, trader turns $160 into $5.6M, and more: Hodler’s Digest</a>

Japan crypto exchange DMM Bitcoin is set to liquidate

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