In 2014, Mt. Gox, once handling over 70% of global Bitcoin trades, suffered a devastating hack - 850,000 BTC vanished. The exchange filed for bankruptcy, leaving thousands of users without their funds.
But what went wrong - and what can we learn?
3 Key Lessons from the Mt. Gox Collapse:
1. Not Your Keys, Not Your Coins
Mt. Gox was a custodial exchange - users didn’t control their private keys. When the platform failed, their coins were gone too.
Takeaway: Use non-custodial wallets for long-term storage.
2. Centralized Exchanges Are Not Risk-Free
Just because a platform is popular doesn’t mean it’s safe. Gox lacked proper audits, security protocols, and transparency.
Takeaway: Choose exchanges with strong security records and consider cold storage for large holdings.
3. Regulation Isn't the Enemy - It's Protection
The collapse pushed governments to start regulating crypto, demanding better protections for users.
Takeaway: Responsible regulation can help prevent future disasters.
Today, Mt. Gox serves as a crypto milestone, reminding us that security, self-custody, and due diligence are non-negotiable in Web3.
Still wondering why people say “Not your keys, not your coins”? This is why.
#CryptoHistory #MtGox #BTC #CryptoLessons #CryptoSafety
