Japanese financial giant SBI VC Trade has announced a deal to acquire the assets and customer accounts of DMM Bitcoin, the crypto exchange crippled by a devastating hack earlier this year. Starting March 8, 2025, DMM’s customers and their assets will be automatically transitioned to SBI accounts, requiring no action on their part, according to SBI’s December 25 notice.

A $320 Million Blow to DMM Bitcoin

The move comes after DMM Bitcoin revealed it could not recover from a security breach in May 2024. Hackers exploited vulnerabilities in its wallet management system, making off with 4,500 Bitcoin valued at $320 million. Despite pledging to reimburse affected customers, DMM Bitcoin ultimately decided to liquidate its operations and transfer its user base to SBI.

North Korean Group Behind the Breach

Authorities have attributed the sophisticated heist to the North Korea-linked hacking group TraderTraitor. Investigations by the FBI, the Department of Defense Cyber Crime Center (DC3), and Japan’s National Police Agency uncovered the multi-layered attack. The group allegedly masqueraded as a recruiter on LinkedIn, targeting an employee of Japanese wallet firm Ginco.

By tricking the employee into running a malicious script disguised as a pre-employment test, the hackers infiltrated Ginco’s GitHub page. Months later, TraderTraitor impersonated the employee to access DMM Bitcoin’s communications, ultimately manipulating a transaction request to seize the Bitcoin.

Rising Crypto Hacks Highlight Security Flaws

The DMM Bitcoin breach is one of the largest crypto heists in 2024. Blockchain security firm Hacken reports that losses from centralized crypto services more than doubled this year, reaching $694 million. Alongside DMM, India-based exchange WazirX suffered a $235 million hack, highlighting the persistent vulnerabilities in the sector.

Looking Ahead

As SBI takes over DMM Bitcoin’s operations, the incident serves as a stark reminder of the critical need for robust cybersecurity measures in the crypto industry. Customers and stakeholders alike will be watching closely to see how SBI integrates these accounts and safeguards their assets in the wake of one of the most significant crypto security failures to date.