Japanese cryptocurrency exchange DMM Bitcoin Co. made a significant announcement on Monday. It revealed that it will be ceasing operations due to the loss of 48.2 billion yen ($320 million) worth of digital assets in an unauthorized leak that occurred late in May. This unexpected event has led to a series of actions and decisions within the company.

Transfer of Customer Assets

The exchange has planned to transfer its customer assets to SBI VC Trade Co., which is a peer under the financial giant SBI Holdings Inc. This transfer is expected to take place by around March next year. This move is aimed at ensuring the safety and security of customer funds during the transition.

Service Suspension and Closure Decision

DMM Bitcoin, a unit of major IT firm DMM.com LLC, took the decision to suspend some of its services, such as screening applications for new accounts, after detecting the unauthorized leakage of funds on May 31. The company judged that prolonged restrictions on its services would cause significant inconvenience to its clients. As a result, it decided to close down.

Financial Security Measures

Fortunately, no customers suffered financial damage as the exchange secured 55 billion yen from its group firm to cover the lost assets. This shows the company's commitment to protecting its customers and taking necessary steps to mitigate the impact of the leak.

Unclear Cause and Regulatory Actions

The cause of the leakage remains unclear, but there is a suspicion of a cyberattack targeting cryptocurrency. In September, Japan's financial watchdog, the Financial Services Agency, ordered the exchange to improve its operations, stating that its risk management structure was insufficient. This highlights the importance of robust regulatory measures in the cryptocurrency industry.