Mt. Gox was one of the first and most significant Bitcoin exchanges, based in Tokyo, Japan. Founded in 2010 by Jed McCaleb and later sold to Mark Karpelès, Mt. Gox at one point handled over 70% of all Bitcoin transactions worldwide. However, the exchange became infamous for its catastrophic collapse in early 2014.
In February 2014, Mt. Gox suspended trading, closed its website, and filed for bankruptcy protection. It was later revealed that approximately 850,000 Bitcoins, worth around $450 million at the time, had gone missing, likely due to a combination of theft and mismanagement over several years. The exact causes remain unclear, but it is believed that a significant portion of the Bitcoins were stolen through hacking exploits.
The collapse of Mt. Gox had a massive impact on the cryptocurrency community, leading to calls for better security and regulatory oversight. It also left many customers with significant financial losses, and efforts to recover and distribute the remaining assets have been ongoing for years. The bankruptcy process has involved complex legal proceedings, with some creditors still awaiting reimbursement.
The Mt. Gox incident is often cited as a pivotal moment in the history of cryptocurrencies, highlighting the risks associated with digital asset exchanges and the need for stronger security measures and regulatory frameworks.
