By Key Points
- SBI acquires DMM crypto assets following a major security breach.
- DMM Bitcoin users to transition seamlessly to SBI VC Trade.
- Hack linked to North Korea’s TraderTraitor cybercrime group.
- Over $694M stolen from centralized services in 2024 alone.
SBI acquired DMM crypto accounts and assets after the exchange faced a devastating hack that resulted in the loss of $320 million worth of Bitcoin in May 2024.
This strategic acquisition by SBI VC Trade ensures DMM Bitcoin’s customers a safe transition to a more secure platform.
Starting March 8, 2025, DMM customers will have their accounts automatically created at SBI, eliminating the need for manual registration.
The acquisition comes as a relief for DMM Bitcoin users who feared losing access to their funds after the exchange announced its inability to recover from the breach.
SBI VC Trade, a prominent player in Japan’s crypto finance sector, aims to rebuild trust for the affected user base. In its Dec. 25 announcement, SBI emphasized that the transition process would be seamless and hassle-free for customers.
SBI’s X post translated to English from Japanese. Source: SBI VC Trade
TraderTraitor Hack Forces DMM Exit
The breach that led to SBI acquiring DMM crypto was orchestrated by the North Korea-linked TraderTraitor group, according to investigations by the FBI, Japan’s National Police Agency, and the Department of Defense Cyber Crime Center (DC3).
The attack exploited a vulnerability at Ginco, a wallet software provider for DMM Bitcoin. A North Korean operative posed as a LinkedIn recruiter and lured a Ginco employee into executing a malicious script disguised as a pre-employment test.
The script enabled the hackers to infiltrate DMM’s wallet management system, steal 4,500 BTC, and swiftly move the funds.
Despite the staggering loss, DMM Bitcoin committed to reimbursing its customers and ensuring no user funds were permanently lost.
However, the long-term impact of the hack forced the exchange to cease operations and transition its users to SBI.
Crypto Security Under Fire in 2024
The deal where SBI acquires DMM crypto assets highlights the growing security challenges in the crypto industry.
According to blockchain security firm Hacken, losses from centralized service breaches more than doubled in 2024, reaching $694 million.
The DMM Bitcoin hack and the $235 million breach of India’s WazirX are among the most significant incidents this year, underlining vulnerabilities in centralized platforms.
As these attacks grow more sophisticated, exchanges must adopt robust security measures to protect their users.
By stepping in to acquire DMM Bitcoin, SBI VC Trade not only salvages the exchange’s user base but also reinforces its commitment to safety and reliability in the crypto space.
