DMM Bitcoin
From Invertopedia, the encyclopedia of how things fail
Entry 123. An analysis built from the public record, not an insider account. Spot an error? Tell us.
DMM Bitcoin was a Japanese crypto exchange launched in January 2018[1]. On May 31, 2024, hackers took 4,502.9 bitcoin, worth $308 million then[1][2]. The exchange secured 55 billion yen in loans[1], but on November 29 it signed a deal to move all accounts and assets to SBI VC Trade and said it would close once the transfer was done[1][3].
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What happened
| Late Mar 2024 | A North Korean actor compromises a Japan-based wallet software firm and uses that access to pivot to DMM.[2] |
|---|---|
| May 31, 2024 | Hackers take 4,502.9 BTC.[1][2] |
| Sept 2024 | Serious problems are found in the company's system risk management.[1] |
| Nov 29, 2024 | DMM signs the transfer deal with SBI VC Trade.[1][3] |
| Dec 2024 | The stolen funds are traced to TraderTraitor-controlled wallets.[2] |
The kill shot
The regulator said serious problems were found in DMM's system risk management and its response to the risk of crypto leaking out.
The company never appointed someone to run the risk management system[1].
The inversion
If one compromised vendor employee can move a transaction, you do not have a second check.
References
- ^ “Japanese crypto service shuts down after theft of bitcoin worth $308 million”. The Record, December 2, 2024. Launch, theft, loans, FSA findings, closure and SBI deal.
- ^ “FBI attributes largest crypto hack of 2024 to North Korea’s TraderTraitor”. The Record, December 25, 2024. FBI attribution and the attack path.
- ^ “Japanese Crypto Exchange to Shut Down After $300M Hack, Transfer Accounts to SBI”. Decrypt, December 2, 2024. Closure and transfer to SBI VC Trade.
Categories: Crypto · Exchange · Closed in 2025 · Cause of death: theft · From the public record