What Is Mt. Gox?
At its peak, it handled a significant majority of Bitcoin transactions globally, with estimates suggesting over 70% of BTC transactions went through Mt. Gox within three years of its establishment.
A Turning Point in Cryptocurrency History
However, in February 2014, Mt. Gox faced a devastating incident that dramatically changed its fate.
The exchange announced that hackers had stolen over 800,000 BTC, out of which 750,000 BTC belonged to customers.
The stolen Bitcoin was valued at approximately $400 million at that time.
If evaluated at present-day prices, it would be worth billions.
Recovery and Unresolved Losses
Following the closure of the exchange, around a month later, approximately 200,000 BTC was discovered in an old wallet.
However, efforts to recover the remaining lost cryptocurrency have been unsuccessful.
More than 127,000 individuals are estimated to have sought compensation for their losses.
Lasting Impact on the Crypto Space
A Japanese court has been responsible for the process of reimbursing the victims, although it is highly likely that they will only receive a fraction of the amount they lost.
The Mt. Gox incident had a significant impact on the cryptocurrency space as a substantial portion of Bitcoin’s total supply vanished permanently.
It also led to increased scrutiny of cryptocurrency exchanges and contributed to the growth of decentralized alternatives where individuals maintain control over their assets.