In a significant development for Japan’s cryptocurrency landscape, DMM Bitcoin announced it raised approximately 55 billion JPY (about $365.1 million USD) in June through a series of strategic financing initiatives. Despite this substantial capital injection, the exchange confirmed it will cease operations following the full transfer of client assets to SBI VC Trade, a subsidiary of the prominent SBI Group. This move comes in the aftermath of a devastating security breach earlier in 2025 that compromised user trust and operational viability.
Breakdown of DMM Bitcoin’s June Financing Rounds
The funding campaign unfolded over the first ten days of June and involved three distinct financial instruments:
- June 3: DMM Bitcoin secured 5 billion JPY (~$33.2 million USD) through a direct loan agreement.
- June 7: The company raised 48 billion JPY (~$318.6 million USD) via an equity capital increase, signaling strong investor confidence at the time.
- June 10: An additional 2 billion JPY (~$13.3 million USD) was obtained through a subordinated loan, finalizing the total fundraising at 55 billion JPY.
These efforts were aimed at stabilizing operations and ensuring orderly asset management following the cyberattack in May. However, despite securing substantial liquidity, the damage from the hack proved insurmountable, leading to the decision to wind down services.
The May 2025 Hack: A Turning Point
In late May 2025, DMM Bitcoin suffered a major cyberattack resulting in the theft of 4,502.9 BTC, valued at approximately $305 million USD at the time—equivalent to 48.2 billion JPY. The breach severely disrupted platform functionality and eroded customer confidence. Following the incident, trading services were suspended or heavily restricted, and attempts to restructure and resume normal operations were ultimately abandoned.
This event underscores the persistent risks facing digital asset exchanges, even in regulated markets like Japan, where compliance standards are stringent. The loss not only impacted users directly but also triggered broader concerns about custodial security practices across the industry.
Transition Plan: Asset Transfer to SBI VC Trade
DMM Bitcoin has formally declared its intention to discontinue operations after completing the transfer of all client-held assets to SBI VC Trade, part of Japan’s influential SBI Holdings ecosystem. The migration process is expected to conclude by March 2025, giving users time to verify holdings and prepare for the transition.
On the same note, SBI VC Trade announced on Monday that it intends to begin facilitating spot trading for 14 cryptocurrencies previously offered on DMM Bitcoin—before the full asset transfer is finalized. This proactive step aims to minimize disruption for traders and maintain market continuity during the transition phase.
The selected digital assets will be integrated into SBI VC Trade’s existing trading infrastructure, benefiting from enhanced security protocols and regulatory oversight. Users are advised to monitor official communications for wallet migration instructions and timeline updates.
👉 Learn how secure, regulated exchanges handle large-scale user migrations after platform changes.
Core Keywords and Industry Implications
This situation highlights several critical themes in the evolving cryptocurrency ecosystem:
- Cryptocurrency exchange shutdown
- Asset transfer between exchanges
- Crypto exchange funding rounds
- Bitcoin theft and cybersecurity
- Regulated crypto platforms in Japan
- Exchange insolvency and user protection
- Post-hack recovery strategies
- SBI Group crypto expansion
These keywords reflect both the immediate developments and broader trends shaping investor behavior, regulatory scrutiny, and platform resilience in Asia’s maturing digital asset market.
Japan continues to play a pivotal role in setting global benchmarks for exchange regulation and consumer protection. The DMM Bitcoin case may prompt further tightening of cybersecurity requirements for licensed operators under the Financial Services Agency (FSA), especially regarding cold storage protocols, multi-signature wallets, and real-time intrusion detection systems.
Frequently Asked Questions (FAQ)
What caused DMM Bitcoin to shut down?
DMM Bitcoin decided to cease operations after suffering a major security breach in May 2025, during which hackers stole approximately 4,503 BTC ($305 million). Despite raising $365 million in June to stabilize finances, the company concluded that resuming services was no longer viable.
Where will DMM Bitcoin users' funds go?
Client assets are being transferred to SBI VC Trade, a regulated cryptocurrency exchange under SBI Group. The transfer is scheduled for completion around March 2025, with users receiving detailed migration guidance from both platforms.
Will my cryptocurrencies retain their value during the transfer?
Yes. The transfer process involves moving equivalent amounts of digital assets to SBI VC Trade. As long as you follow official procedures, your holdings' market value will remain subject only to normal price fluctuations—not platform conversion risks.
Can I trade my assets immediately on SBI VC Trade?
SBI VC Trade plans to start spot trading for 14 cryptocurrencies formerly available on DMM Bitcoin—even before the full transfer concludes. Check their official website for the supported asset list and launch dates.
Was DMM Bitcoin insured against theft?
While specific insurance details have not been fully disclosed, Japanese exchanges typically carry partial coverage for cyber theft. However, losses of this magnitude often exceed policy limits, leaving users reliant on platform solvency and recovery efforts.
How can I protect my crypto from similar exchange risks?
Experts recommend:
- Using self-custody wallets for long-term holdings
- Choosing exchanges with transparent proof-of-reserves
- Enabling multi-factor authentication (MFA)
- Monitoring platform news and regulatory status regularly
Final Thoughts: Lessons from the DMM Bitcoin Exit
The closure of DMM Bitcoin serves as a cautionary tale about the fragility of trust in digital finance—even when backed by significant funding. While raising $365 million demonstrated institutional support, it couldn’t compensate for the reputational and operational fallout from a massive security failure.
For users, this transition emphasizes the importance of staying informed during periods of platform instability. For regulators and industry leaders, it reinforces the need for robust cybersecurity frameworks and clear exit protocols that prioritize user protection.
As SBI VC Trade steps in to absorb affected customers and reignite trading activity, Japan’s crypto market demonstrates resilience through structured consolidation—a model other jurisdictions may look to emulate in managing exchange failures responsibly.