?$BNB
? Mt. Gox is the largest Bitcoin exchange in the world, controlling 70% of all Bitcoin transactions globally at its peak.
🤔 However, the platform suffered a major hack in February 2014, resulting in the disappearance of 850,000 Bitcoins, which were valued at $350 million at the time, and reached a value of $62.7 billion when Bitcoin hit its peak.
🤔 How the scandal started:
• Establishment of the platform: Mt. Gox was founded in 2010 by Jed McCaleb, who transformed it from a trading platform for game cards into a Bitcoin exchange.
• Sale and expansion: In 2011, McCaleb sold the platform to Mark Karpeles, who significantly expanded its operations until it came to dominate the Bitcoin market.
• Targeting cyber attacks: Due to rapid growth, Mt. Gox became a major target for cyber attacks, suffering repeated hacks, the most notable being in June 2011 when 25,000 Bitcoins were stolen.
🤔 How the hack happened:
• Exploiting vulnerabilities: In 2014, hackers exploited a vulnerability known as "transaction malleability," allowing them to alter transaction details and steal Bitcoins without being detected.
• Deterioration of the situation: The thefts continued unnoticed by the platform, until the situation became uncontrollable.
• Bankruptcy announcement: When users noticed delays in withdrawals, the platform suddenly declared bankruptcy, claiming that Bitcoins had "disappeared" due to security lapses and internal exploitation.
🤔 What happened after the scandal:
• Legal battle: A decade-long legal battle began, with users demanding their money back.
• Recovery of Bitcoins: In 2018, the platform managed to recover 200,000 Bitcoins and began a rehabilitation process under a court-appointed trustee.
• Starting repayments: In 2024, Mt. Gox began repaying its debts, transferring 42,587 Bitcoins worth $2.85 billion to an unknown wallet in preparation for compensating creditors.
• Cooperation with Bitstamp: The repayment process is being carried out in cooperation with Bitstamp, where $9.4 billion worth of Bitcoin and Bitcoin Cash will be distributed to 127,000 creditors.
🤔 The impact of the scandal on the crypto market:
• Exposing vulnerabilities: The scandal revealed a lack of security and transparency in trading platforms, prompting the industry to improve financial audits.
• Impact on Bitcoin price: The scandal significantly affected the price of Bitcoin, as its value dropped after the platform's collapse.
• Waiting for compensation: Some users are still waiting for their money to be refunded, making it one of the longest legal cases in cryptocurrency history #CardanoDebate #TrumpTariffs #IsraelIranConflict #BinanceHODLerRESOLV #StrategyBTCPurchase
