Japan's DMM Bitcoin Shuts Down Amid $320M Fraud, Plans To Transfer Assets To SBI Group

Japanese Bitcoin BTC/USD and cryptocurrency exchange DMM Bitcoin will liquidate after a $321 million fraud in May crippled its operations, affecting 450,000 client accounts and 96.2 billion yen in assets.

What Happened: By March, the exchange plans to transfer assets to SBI VC Trade, an SBI Holdings SBHGF subsidiary, reported Nikkei Asia.

Despite implementing a “cold wallet” system, authorities found flaws in DMM Bitcoin’s security measures. SBI VC Trade, with 700,000 accounts, is expected to pay 3-5 billion yen for the assets, boosting its customer base.

The liquidation reflects ongoing challenges in Japan’s crypto sector, which tightened regulations following past fraud cases.

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