SBI VC Trade Finalizes Takeover of Compromised Cryptocurrency Exchange DMM Bitcoin Assets

The cryptocurrency arm of Japan’s prominent financial institution SBI Holdings, known as SBI VC Trade, is set to acquire the client portfolios and assets from the struggling DMM Bitcoin exchange.

On March 8, 2025, all client assets and accounts currently with DMM Bitcoin will officially transfer to SBI VC Trade as part of the final steps of DMM Bitcoin’s wind-down triggered by a massive cyber theft that led to a loss of $305 million in May 2024.

The Path to Liquidation and Asset Transition

An announcement on December 25 by SBI VC Trade, available in a detailed notice, specified that current DMM Bitcoin customers will have their accounts seamlessly transferred by the scheduled date, without the need to re-register. The move will cover both cryptocurrency and fiat holdings with a complete record of past transactions with DMM Bitcoin assumed by SBI VC Trade.

With the original virtual asset offerings numbering 24, SBI VC Trade will expand its slate with 14 additional cryptocurrencies from DMM Bitcoin, such as Tron (TRX), The Sandbox (SAND), Algorand (ALGO), and Maker (MKR).

SBI VC Trade also pronounces the assumption of leveraged trading pairs that were offered by DMM Bitcoin excluding those already available through SBI. The firm further iterates that it will not carry over any open positions in leveraged trades.

According to the notification, staking mechanisms will be activated automatically for transitioning customers. DMM Bitcoin clients who previously staked Ethereum (ETH), Avalanche (AVAX), Oasys (OAS), Flare (FLR), and Hedera (HBAR) are slated to benefit from staking services at SBI VC Trade, with the maiden staking awards expected to be credited in April 2025 for those holding onto these assets.

Consequences of the Security Breach

Following strenuous and ultimately futile attempts to recover from a heist in late-May, resulting in a substantial loss of over 4,500 BTC, DMM Bitcoin closed its operations. This theft is recorded as one of the largest in Japan, second only to Coincheck’s $523 million NEM token loss in 2018. DMM Bitcoin’s cyber intrusion is thought to have been orchestrated by operatives linked to North Korea, known specifically as TradeTraitor.

Subsequent investigations in July illuminated that over $35 million pilfered from DMM Bitcoin had been washed through the notorious online marketplace known as Huione Guarantee in Cambodia. A disclosure detailed in a report, and according to the anonymous blockchain detective ZachXBT, similar patterns of money laundering were employed by another DPRK-linked syndicate, the Lazarus Group.

DMM Bitcoin pledged prompt recompense for the affected clientele. However, despite a loan of 50 million yen for user reimbursement, it could not salvage its operational integrity, resulting in the strategic decision to transfer assets to SBI VC Trade.

An announcement made on December 2, confirmed the acquisition, with SBI firm on ensuring a smooth transition for DMM Bitcoin’s former clientele.