Japan's DMM Bitcoin to end business after losing 48 bil. yen in leak

Japanese cryptocurrency exchange DMM Bitcoin Co. said Monday it will go out of business after losing 48.2 billion yen ($320 million) worth of digital assets in an unauthorized leak late May.

The exchange will transfer its customer assets to SBI VC Trade Co., its peer under financial giant SBI Holdings Inc., by around March next year, it said.

The company, a unit of major IT firm DMM.com LLC, suspended some of its services, such as screening applications for new accounts, after it detected an unauthorized leakage of funds on May 31.

DMM Bitcoin said it decided to close down because it judged prolonged restrictions on its services would significantly inconvenience clients.

No customers suffered financial damage as the exchange secured 55 billion yen from its group firm to cover the lost assets.

The cause of the leakage remains unclear, but a cyberattack targeting cryptocurrency is suspected.

In September, Japan’s financial watchdog, the Financial Services Agency, ordered the exchange to improve operations, saying its risk management structure was insufficient.

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