This is Zhao Tong.

At 16, he bought Bitcoin for $10 and created the first crypto margin exchange.

Here's the incredible story of how he lost 100,000 BTC, worth $6 billion today:

As a teenager, he discovered Bitcoin and was captivated by its potential for near-free global money transfers. He excitedly told his friends, “It’s a cool idea.”

Buying Bitcoin in 2011 was challenging. The largest exchange, Mt. Gox, faced hacks and a flash crash that dropped Bitcoin's price to $0.01 soon after Tong invested.

In just 4 days, he created Bitcoinica. It wasn't just another Bitcoin exchange; it enabled margin trading. Traders and miners used it to hedge against volatility and speculate on future prices. Users could bet up to 50 BTC.

Bitcoinica’s trading volume quickly soared to $40 million a month, second only to Mt. Gox. Tong made $10,000, or about 2,000 BTC, in the first two weeks. However, concerns arose about his age and experience.

Despite this, Bitcoinica’s liquidity grew. But by late 2011, with exams looming, he decided to sell the company. He was still in school.

The new owners, Wendon Group, sought help from veteran Bitcoin developers.

Wendon Group invested heavily to show their commitment, even paying $1 million for the coveted Bitcoin.com domain.

In March 2012, disaster struck. Bitcoinica’s servers were hacked, resulting in the loss of over 43,000 BTC held for customers.

Later that month, Bitcoinica was attacked again, with another 48,000 BTC stolen.

The fallout led to blame games among Zhao, Wendon Group, and Amir. Users just wanted their Bitcoin back.

The exact events remain a mystery. Zhao’s takeaway: Bitcoin users and businesses need to take security seriously.

His final act was investing 1,000 BTC in a rare solid gold Casascius coin, one of only three, now valued at over $60 million. Then, he left Bitcoin.

Exchange hacks continue today, underscoring the importance of hardware wallets.

But there’s a happy ending for some. He is still in Bitcoin and founded Coinjar, one of Australia’s largest exchanges, trading $2 million daily