SBI VC Trade to Take Over DMM Bitcoin's Assets After a Major Hack in May 2024, Offering Staking Rewards Starting April 2025

Japanese crypto firm SBI VC Trade has finalized a deal to receive the assets of the hacked exchange DMM Bitcoin.

Japanese crypto firm SBI VC Trade has finalized a deal to receive the assets of the hacked exchange DMM Bitcoin, which will be transferred on March 8, 2025.

The move comes after DMM Bitcoin failed to bounce back from a major hack in May 2024, which saw the exchange lose over $320 million in Bitcoin to hackers.

As part of the deal, DMM Bitcoin users will not be required to set up new accounts.

If they do not have an account, SBI VC Trade will create accounts for them.

SBI announced the agreement on December 25, 2024, and confirmed the March deadline for the full transfer of assets and customer accounts by both Squarespace and PayPal.

Customer accounts will be automatically migrated to SBI, allowing them to use their assets without any disruption.

The exchange currently handles 14 cryptocurrencies, and SBI plans to support those.

However, the bank clarified that it will not be offering cryptocurrency to cryptocurrency exchange, such as ETH/BTC exchange, at this time.

For now, it has no plans to offer leveraged trading either.

Positions in leveraged trading that currently exist at DMM Bitcoin will not be transferred.

After the transfer, users will be able to stake eligible assets such as ETH, AVAX, OAS, FLR and HBAR, via the SBI.

Customers with these assets will be able to stake and earn staking rewards starting April 2025.

The hack that led to the closure of DMM Bitcoin occurred on May 30, 2024.

The company's servers were breached, allowing hackers to steal private keys and over 4,500 Bitcoin.

The stolen Bitcoin was valued at about $320 million at the time of the hack.

It is considered one of the biggest cryptocurrency exchange breaches in Japan's history, only surpassed by the $530 million Coincheck hack in 2018, which saw exchange users lose roughly $60 million.

Back in December 2024, the DMM Bitcoin had announced that it would be closing its operations following the breach.

Due to not being able to recover from the incident, the company decided to transfer its assets and customer accounts to SBI VC Trade.

The acquisition will allow DMM Bitcoin customers to continue using their existing assets on the new platform securely.