The demise of crypto exchange FTX is etched in our memory. The debacle sent huge shock waves through the crypto industry. But today, exactly 9 years ago, the crypto industry was rocked by an even bigger debacle; Mt. Gox. What are some lessons we can learn from this situation?
Mt. Gox and the 800,000 Lost Bitcoins
Mt. Gox was a Japanese crypto exchange that was founded in 2010. It quickly became one of the largest exchanges in the world, handling a whopping 70% of all bitcoin trades worldwide. In 2014, Mt. However, Gox filed for bankruptcy after a series of hacks and malpractices.
The infrastructure of the exchange has been exploited by hackers. This happened multiple times over a period of years, leading to the loss of over 800,000 customer bitcoins. This loss, which amounted to more than $430 million at the time, is considered one of the largest losses in cryptocurrency history.
Today, exactly 9 years ago, the exchange stopped trading and went offline. Since then, creditors are still trying to recover some of their BTC. It is important to reflect on this black jubilee.
Crypto survives blow
The fact that the cryptocurrency industry still exists despite the disastrous collapse of Mt. Gox, says a lot about the industry’s resilience. The bankruptcy of Mt. Gox was a huge blow to the industry, with many predicting it would spell the end of cryptocurrency. However, the industry has not only survived, but has grown and evolved significantly in the years since.
Even after the more recent similar event, the collapse of FTX, industry leaders are urging self-preservation. This means that investors store crypto in their own wallet, instead of on the central platform such as crypto exchanges. Read more about the different crypto wallets here.
Self custody your #Bitcoin .
— Dan Held (@danheld) June 13, 2022