DeFi Planet

Last updated on December 4th, 2024 at 12:12 pm

SBI VC Trade, the cryptocurrency exchange division of Japan’s SBI Holdings, has agreed to acquire all customer accounts and assets from DMM Bitcoin, a cryptocurrency trading platform based in Tokyo.

The agreement, announced in a statement by SBI VC Trade on Monday, outlines plans to transfer all customer assets, including Japanese yen and cryptocurrencies, by March 2025. Additionally, SBI VC Trade plans to expand its services to include 14 cryptocurrency spot trading pairs currently offered by DMM Bitcoin, ensuring a smooth transition for affected customers. This decision comes as DMM Bitcoin prepares to cease operations following a significant security breach earlier this year.

The companies are still finalizing the transfer details, including the specific date and method. Both firms emphasized promptly disclosing further updates as decisions are made. This transition aligns with SBI Group’s “customer-centric” approach, with the company pledging to provide seamless, client-oriented services.

DMM Bitcoin’s shutdown and asset transfer followed a security breach in May, which resulted in the loss of 4,502.9 BTC, valued at approximately $306 million. It appeared to promise its clients that it would reimburse customers if necessary.

“Please rest assured that all of your bitcoin deposits will be fully guaranteed, as we will procure the equivalent amount of BTC that was leaked with support from our group companies,”

it said in its statement.

The incident led to the exchange halting operations and facilitating a transfer to SBI VC Trade, a more established cryptocurrency platform. The DMM Bitcoin hack reflects a rising trend of attacks on centralized exchanges in 2024.

Recently, the UAE-based M2 exchange also fell victim to a security breach, losing $13.7 million from its hot wallets. However, the exchange assured customers that all funds were restored and services resumed with enhanced security measures. M2 took full responsibility, reinforcing its commitment to customer protection.

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