Biggest Bitcoin theft in history | Bitcoin | Hackers

A former Bitcoin exchange, in its glory days, its business volume accounted for 70% of the global Bitcoin trading volume, and it was the number one. However, due to a large number of Bitcoin thefts and a series of problems, the exchange went bankrupt. This video talks about the largest Bitcoin theft in history. Welcome to After Tea and Dinner, a storytelling channel. This channel strives to bring you a pleasant time. Thanks for liking, subscribing and sharing. There is a video game called Magic the gathering online. The main props in this game are virtual cards. There is an American named Jed McCaleb. Jed is very famous. He also invested in open AI. In 2006, Jed built a website that allows players of the video game Magic the Gathering Online to trade cards in the game just like they do in the stock market. The domain name of the website is mtgox.com, mtgox is the abbreviation of Magic the gathering online. After working on the website for two or three months, Jade felt that the website could not make much money, so he gave up maintaining it. The time has come for 2010. Jed learned about Bitcoin. He quickly realized that there was a need for a trading platform that would allow users to trade Bitcoin on the platform. He turned mtgox into a website for trading Bitcoin. In 2011, Jed sold this website to a man named Mark Capelles. Mark is a Frenchman living in Japan, so this story mainly took place in Japan. Because Bitcoin was a new thing at the time, the technology was not very mature. mtgox often has problems. On June 13, 2011, mtgox announced that 25,000 bitcoins had been stolen. The Bitcoins were worth $400,000 at the time and belonged to 478 accounts. On June 17, 2011, mtgox's user database was leaked, and someone sold his user information online. On that day, the Bitcoins in the exchange account were constantly stolen. On June 19, a hacker invaded the trading backend of mtgox and took control of a high-level account in the exchange. A lot of Bitcoins in the platform were transferred to the hacker's own account, and the hacker placed an order on the platform to sell his stolen Bitcoins at a price of one cent. The platform was particularly chaotic at the time. The affected funds amounted to more than 8 million US dollars. After a few minutes, the platform solved the problem and the price of Bitcoin normalized. This matter is huge and has caused a crisis of trust among users in mtgox. This mtgox is simply a grassroots team. Users question mtgox and think mtgox is not good. In order to prove that it can do it, mtgox transferred more than 420,000 bitcoins from the cold wallet to the online hot wallet to prove to customers that he is capable and not afraid. Although these problems have occurred, it doesn't matter. I have the strength and it's okay to lose a little money. This is what happened in 2011. Despite these problems, the exchange's business is still booming because the cryptocurrency market is booming. By April 2013, 70% of the world's Bitcoin transactions were conducted on mtgox, which was the world's leading number one at that time. However, things soon started to go wrong. From April 11 to 12, 2013, mtgox suspended trading. Its explanation to the outside world was that it wanted to calm down the market. This market was too crazy. After trading was reopened, Bitcoin immediately fell from US$100 to US$55. On May 2, 2013, an exchange in the United States called coinlab took Mtgox to court, claiming US$7.5 million. The reason is that in February 2013, the two families signed an agreement to do business together. The agreement stipulates that mtgox will hand over all customers in North America to coinlab for management. But later, mtgox refused to hand over North American customers to Coin Lab. mtgox went back on its word and failed to abide by the contract. Coin Lab quit and took mtgox to court. Soon after, on May 15, 2013, the U.S. Department of Homeland Security seized the accounts of mtgox's branches in the United States. Americans said that mtgox was not registered in the United States, and it was illegal to engage in financial services such as Bitcoin transactions. . The United States seized a total of $5 million. On June 20, 2013, mtgox suspended the website’s US dollar payment service. In July 2013, mtgox announced that everyone can withdraw US dollars, but in fact it is difficult to withdraw US dollars. Basically, everyone still cannot withdraw US dollars. In August 2013, mtgox issued a statement that they were unable to pay in U.S. dollars because the United States seized his account. The situation continues to get worse. In November 2013, all users’ money and Bitcoins were unable to be withdrawn. The incident got bigger and bigger, and the fire became more intense. In February 2014, customers complained online, feeling that something was going to happen. On February 7, 2014, mtgox stopped all trading. On February 10, 2014, mtgox held a press conference. They said that because there were loopholes in the Bitcoin software system, the transactions inside it were abnormal and the system was unsafe. They have suspended trading and are working with the software development team to resolve the issue. On February 17, 2014, mtgox held another press conference. At this meeting, they told everyone what they were doing, their plans, and how to solve software vulnerabilities step by step. At that time, the Wall Street Journal in the United States interviewed the French boss of mtgox, Mark, via email. The Wall Street Journal asked Mark, now these customers are worried about whether your company is failing or whether there is a problem. The Wall Street Journal also asked him when the exchange could reopen. Mark didn't answer any of these questions. But Mark said that even if the exchange reopens in the future, there will be a limit on the amount of daily and monthly withdrawals. But the exchange is still closed. On February 20, 2014, in order to calm online public opinion, mtgox issued another statement, but did not say when it would reopen trading. He was just here to deal with these customers. At that time, two Bitcoin players protested under the mtgox office building. Later mtgox moved its office. On February 23, 2014, the French owner of the mtgox exchange, Mark, resigned from the Bitcoin board of directors. On the same day, the company’s Twitter account was completely wiped out. On February 24, 2014, the mtgox website could not be opened at all, with a 404 error and a blank page. Later, internal company documents were leaked. The documents stated that mtgox lost 750,000 Bitcoins, and these Bitcoins were not lost all at once. They had been lost and stolen over the past few years, but he himself seemed Don't even know. Soon, 6 Bitcoin exchanges united and issued a statement saying that they had nothing to do with mtgox, telling their customers that mtgox was out of business, but they were still very good, and asked customers not to be nervous or afraid. On February 25, 2014, mtgox issued a statement on its website that because these recent news reports had an adverse impact on the company, they decided to close all transactions now. Mark told Reuters that now is a critical period for mtgox. From February 1, 2014, to the end of March, the price of Bitcoin fell by 36%. Later, the U.S. Department of Justice concluded that a man named Alexander Winnik was the man behind the loss of mtgox Bitcoins. Alexander Winnik was a Russian and the owner of another Bitcoin exchange. His Bitcoin exchange was called BTC. -E. Mtgox is completely dead. On February 28, 2014, mtgox filed for bankruptcy protection in Tokyo. mtgox told the Tokyo court that his external debts were 6.5 billion yen, and the exchange still had 3.8 billion yen in assets. He was insolvent, but the exchange still had so much money. Then, mtgox announced that he lost 850,000 Bitcoins, 750,000 of which belonged to customers. 100,000 coins belong to their company. These Bitcoins accounted for 7% of the total number of Bitcoins on the market at that time, and were worth US$470 million at the time. mtgox stated that the loss of Bitcoin is all the fault of those hacker bastards. They want to recover their lost Bitcoins. In March 2014, mtgox also filed for bankruptcy protection in the United States, because many people in the United States were also suing mtgox, saying that mtgox was simply a scam website. There is unconfirmed news that in March 2014, mtgox said on his website that they had recovered 200,000 Bitcoins, which were stored in an old digital wallet. If this news is true, it shows how chaotic the management of this exchange is. You have 200,000 Bitcoins. You put them in your wallet and you forgot about them. Until now, when such a big thing happens, you are all over the world. Found it, found it again. In April 2015, a Japanese network security company announced that their investigation found that the bitcoins lost by mtgox were all stored in his hot wallet. People have been stealing his bitcoins since 2011. currency. But mtgox never noticed it. It's also possible that he knows, but he doesn't dare to tell others. mtgox has filed for bankruptcy protection, and someone needs to deal with the aftermath. The person handling it is also the CEO of a Bitcoin exchange, this CEO is named Jesse Powell. In an interview, Jesse Powell said that 127,000 customers are now suing mtgox for damages. In August 2015, Mark was arrested by the Japanese police on charges of fraud and embezzlement of public funds, including operating the computer system in the exchange and inflating the account balance, which made people feel that his exchange was particularly rich, but in fact The balance on his account is fake. None of these charges have anything to do with the Bitcoins he lost. Later, the Japanese police discovered that six months before the exchange collapsed, Mark had transferred more than 2 million US dollars worth of Bitcoins from the exchange account to an account controlled by himself. This shows that he had a premonition half a year ago and felt that it was no longer possible, so he began to leave a way out for himself. No matter what the outcome of this exchange would be in the future, he could not let himself suffer a loss. Even if the temple collapses, the monk will not suffer. In March 2019, the Tokyo District Court ruled that Mark was guilty of falsifying data, which refers to the fact that he exaggerated the company's assets by changing accounts as mentioned earlier. Mark will serve 30 months in prison, but will be suspended for four years, which means that, If Mark behaves in the next four years and does not make any mistakes, and the court cannot find out if he has any other criminal facts in the past, Mark will not have to go to jail. As for the crimes of embezzlement of public funds and fraud mentioned earlier. These two crimes were more serious, but the court believed that Mark did commit these crimes, but he did not do so out of malice and had good intentions, so he was not convicted. Mark later issued a statement saying he was grateful to the court for not convicting him of these two felonies. Mark said that he is still discussing with his lawyer to find a way to cancel his crime of falsifying data and restore himself to a completely innocent person. mtgox became popular in 2014. But it still has a lot of Bitcoin on hand. How many there are is not clear. But there is news that in July 2022, his bankruptcy liquidation team had more than 140,000 Bitcoins in hand. After so many years, the price of Bitcoin has been rising, and now it has been able to cover the compensation he gave to his customers. In April 2023, mtgox announced that from 2014 to 2023, after such a long time, all those who should be sued were sued. This matter has turned over and no one can sue me in the future. In October 2023, they began Compensate customers. In September 2023, mtgox announced that by October 31, 2024, all compensation he would give to customers would end. The story of mtgox is over. thank you for watching