DMM Bitcoin to Shut Down Operations After 48 Billion Yen Loss
A major shake-up in the world of cryptocurrency made waves this week as DMM Bitcoin Co. announced its decision to shut down operations. The exchange revealed that it lost a staggering 48.2 billion yen (around $320 million) in a digital asset leak back in May.
But fear not, customer assets are not lost in the void! DMM Bitcoin plans to transfer all customer assets to SBI VC Trade Co., a fellow company under the umbrella of financial giant SBI Holdings Inc., by March of next year. This move aims to ensure that customers are not left high and dry.
Following the unauthorized funds leak incident in May, DMM Bitcoin took swift action to suspend some of its services, such as screening new account applications. The exchange wanted to prioritize the security of its customers’ funds and information.
Although the cause of the leakage remains a mystery, suspicions point to a cyberattack targeting cryptocurrency systems. In light of this event, Japan’s Financial Services Agency stepped in and ordered the exchange to enhance its operations and risk management practices.
Luckily, DMM Bitcoin was able to cover the lost assets by securing funds from its group firm, totaling 55 billion yen. This means that no customers suffered financial losses due to the incident. Despite this safety net, the exchange chose to close down to avoid inconveniencing clients with prolonged service restrictions.
The closure of DMM Bitcoin serves as a reminder of the importance of robust security measures in the world of cryptocurrency. As the digital asset landscape continues to evolve, it’s crucial for exchanges and investors alike to stay vigilant and prioritize cybersecurity to safeguard against potential threats.
