SBI VC Trade will transfer 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. It will be transferred on March 8, 2025. The move comes in response to DMM Bitcoin failing to bounce back after a significant breach in May 2024. The exchange lost more than $320 million in Bitcoin to the hackers. Under the deal, DMM Bitcoin users won’t need to set up new accounts. If they do not have an account, SBI VC Trade will create accounts for them.
On December 25, 2024, SBI announced the agreement. The March deadline was confirmed by it as when the assets and customer accounts would be fully transferred by both Squarespace and PayPal. Customers will be able to use their assets without any disruption because their accounts will be automatically migrated to SBI. DMM Bitcoin has been handling 14 cryptocurrencies, and the exchange plans to support those.
SBI VC Trade to Offer Staking for DMM Bitcoin Users After Transfer
But the bank also 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. 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. Starting April 2025, customers with these assets will be able to stake and earn staking rewards.
The hack that caused the closure of DMM Bitcoin was on May 30, 2024. The company’s servers were hacked, enabling hackers to steal private keys and more than 4,500 Bitcoin. The stolen Bitcoin had a value of about $320 million at the time of the hack. It is considered one of the biggest cryptocurrency exchange breaches in Japan’s history, only behind the $530 million Coincheck hack in 2018, this event saw exchange users lose roughly $60 million.
Back in December 2024, the DMM Bitcoin had declared 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. DMM Bitcoin customers can continue to securely use their existing assets on the new platform through the acquisition.
