TL;DR
- SBI VC Trade successfully acquires assets of DMM Bitcoin following a massive $305 million hack.
- Former DMM Bitcoin users won’t need to re-register their accounts; all funds will be automatically transferred to SBI.
- SBI VC Trade expands its cryptocurrency portfolio and will continue staking services for DMM Bitcoin users.
On December 25, 2024, SBI VC Trade, the cryptocurrency platform backed by Japan’s financial giant SBI Holdings, announced the completion of its acquisition of assets from DMM Bitcoin, which had been severely compromised after a cyberattack in May of the same year. This agreement, set to take effect on March 8, 2025, marks the end of the liquidation process for DMM Bitcoin, which resulted in the loss of over $305 million due to the theft of more than 4,500 BTC.
The platform, which had been operating under strain since the incident, ceased operations shortly after the hack, leaving thousands of users without access to their funds. However, with the acquisition by SBI VC Trade, former DMM Bitcoin users won’t need to re-register, as their accounts and assets will be automatically transferred to the new platform. Both fiat and cryptocurrency funds will be directly moved to SBI, ensuring that no transaction data from the hacked exchange will be lost.
Expansion and Transition to SBI VC Trade
With this acquisition, SBI VC Trade significantly expands its cryptocurrency offering. In addition to the 24 virtual assets already available on its platform, it will add 14 new cryptocurrencies, including Tron (TRX), The Sandbox (SAND), Algorand (ALGO), and Maker (MKR). The company will also take over the leveraged trading pairs previously offered by DMM Bitcoin, excluding those already available on its own platform.
A key aspect of the transition will be the management of cryptocurrency staking. Users who held assets such as Ethereum (ETH), Avalanche (AVAX), Oasys (OAS), Flare (FLR), and Hedera (HBAR) on DMM Bitcoin will be able to participate in staking on SBI, with rewards set to be distributed starting in April 2025, as long as the assets remain in their new accounts.
This incident has left a mark on the cryptocurrency industry in Japan, being the second-largest hack in the country after the 2018 Coincheck breach, which also involved significant fund losses. Despite DMM Bitcoin’s efforts to reimburse its users, the scale of the attack proved unsustainable, leading to the decision to transfer all assets to SBI VC Trade. The firm has reiterated its commitment to ensuring a smooth transition for all affected users.
