When Did Mt Gox Collapse?
If you've been following the cryptocurrency space for a while, chances are you've heard of Mt Gox. But when exactly did this infamous exchange collapse? Let's dive into the timeline of events that led to the downfall of Mt Gox.
The Rise and Fall of Mt Gox
Mt Gox was once the largest Bitcoin exchange in the world, handling over 70% of all Bitcoin transactions at its peak. However, in 2014, the exchange filed for bankruptcy after losing around 850,000 bitcoins worth over $450 million at the time.
Timeline of Events
- February 2014: Mt Gox halted all withdrawals, citing technical issues. The price of Bitcoin plunged as users panicked about the security of their funds.
- February 24, 2014: Mt Gox filed for bankruptcy protection in Japan, revealing that it had lost 750,000 of its customers' bitcoins and 100,000 of its own.
- March 2014: The CEO of Mt Gox, Mark Karpeles, was arrested by Japanese authorities on suspicion of embezzlement.
- April 2014: Mt Gox announced that it had found 200,000 of the missing bitcoins in an old wallet.
- August 2014: The bankruptcy process for Mt Gox officially began, and customers were asked to file claims for their lost funds.
- May 2016: Mark Karpeles was formally charged with embezzlement and data manipulation in connection with the collapse of Mt Gox.
- August 2018: A Japanese court acquitted Karpeles of embezzlement charges but found him guilty of data manipulation.
Aftermath
The collapse of Mt Gox sent shockwaves through the cryptocurrency community and highlighted the need for better security measures in the industry. It also left thousands of customers without access to their funds, many of whom are still waiting for compensation years later.
In the end, the story of Mt Gox serves as a cautionary tale for both investors and exchanges in the cryptocurrency space. It's a reminder of the importance of transparency, security, and trust in an industry that is still finding its footing. While Mt Gox may be gone, its legacy continues to shape the way we think about cryptocurrency exchanges and the importance of protecting users' funds.
