SAD_
Autopsy report

Mt. Gox

BTC | Centralized exchange
Hack / exploitDied Feb 2014

For years the largest Bitcoin exchange, Mt. Gox halted withdrawals in February 2014 and then collapsed, reporting about 850,000 BTC missing. Creditor repayments only began a decade later.

Missed warning signs
  1. 1-3y
  2. 2-3y
  3. 3-6mo
  4. XDeath

Spacing is ordinal, not to scale. Numbers match the list below.

  1. 1

    One person controlled keys and operations, with no segregation of custody.

    Visible 3 years before death | One person holds the keys

    WIRED

  2. 2

    Earlier thefts and breaches, going back to 2011, were never fully explained to users.

    Visible 3 years before death | Unexplained past breaches

    WIRED

  3. 3

    Withdrawals had been slow and then blocked in the months before the end.

    Visible 6 months before death | Withdrawal delays

    TechCrunchReuters

The lesson

Not your keys, not your coins. The original lesson, still unpaid.

Sources
Similar graves
QuadrigaCX
Custody failure
Jan 2019 | $190M
Cryptopia
Hack / exploit
Jan 2019 | $16M
Nirvana Finance
Hack / exploit
Jul 2022 | $3.5M

Editorial summary of public reporting. Allegations are labeled as allegations. Not financial or legal advice.

Don't read the next obituary from inside it.

The lab reads live markets so you see the signs in real time, not in the rearview.

Subscribe - $20/mo