The post Ripple Joins SBI VC Trade to Secure DMM Bitcoin Users Post-Hack appeared first on Coinpedia Fintech News
DMM Bitcoin, a cryptocurrency exchange in Japan, faced a massive security breach in May 2023, when North Korean hackers stole 4,500 Bitcoins, worth about $320 million at the time. It hugely impacted the firm’s operation and despite several attempts to recover the funds DMM Bitcoin failed to restore their customer money. As a result, the company decided to stop its business operations and focus on transferring customer accounts to a more secure platform. Growing hack incidents are creating panic in the market reflecting the worse side of investing in digital assets.
DMM Bitcoin’s Strategic Steps to Address the Situation
In response to the breach and the challenges of recovering from it, DMM Bitcoin announced a plan to liquidate its operations and transfer all customer accounts and assets to SBI VC Trade, a crypto exchange operated by SBI Group. This transfer is scheduled to be completed by March 2025.
Ripple’s Role in the Transfer
Recently to streamline the account transition process SBI VC Trade, roped its partner Ripple to help DMM Bitcoin’s users by ensuring that their accounts and assets would be safely transferred. Ripple’s involvement adds an extra layer of trust, given SBI’s long-standing relationship with the blockchain company and its reputation for secure digital asset management. This means that DMM Bitcoin users won’t need to open new accounts with SBI, as their existing assets will be transferred directly.
Plus, SBI stated they will offer 14 new crypto products to the users, although crypto-to-crypto trading pairs ETH/BTC and leveraged trading will not be included in the offerings, focusing on safer and more stable options for users.
This strategic move by DMM Bitcoin aims to restore customer faith and provide a secure environment for trading, while SBI VC Trade’s expertise in handling such transfers ensures a smooth transition for affected users.
This incident shows that the crypto exchanges need better security to safeguard their customer funds many hacking incidents are coming majorly from North Korea signaling they know the loopholes in the system and it should be a lesson for other crypto firms. Moreover, Japan’s anti-crypto take on Bitcoin reserve plans can also impact the crypto in the country in a current Bitcoin market scenario.
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