Guide: The Story of Mt. Gox
In 2014, Tokyo-based BTC exchange Mt. Gox filed for bankruptcy, claiming hackers had stolen the equivalent of $460 million. The news shook the crypto world. From a distance, the world’s leading BTC exchange appeared to be a glowing example of the future. But according to insiders, it was a combination of mismanagement and neglect.
But what was Mt. Gox, and what explains its monumental collapse?
What was Mt. Gox?
Mt. Gox was a Tokyo-based crypto exchange that operated between 2010 and 2014. At its peak, the exchange was considered the largest BTC exchange in the world and was responsible for 70% of all Bitcoin transactions.In 2014, the exchange declared bankruptcy. However, it has since remained the subject of speculation. There are ongoing lawsuits involving Mt. Gox, as well as attempts to identify those responsible for the hack.
The website that would become the Mt. Gox exchange was created by Jed McCaleb, who later co-founded Ripple. Originally, the website enabled online trading of the card game “Magic: The Gathering.” McCaleb sold the site to Mark Karpeles, a programmer and Bitcoin enthusiast.
So, what caused the collapse of the world's biggest BTC exchange?
Mt Gox's collapse
The exchange’s popularity made it a target for hackers, and Mt. Gox was subject to a range of security issues throughout its time in operation. In June 2011, it was hacked for the first time. During this attack, hackers took the equivalent of $8.75 million.In February 2014, the exchange claimed to have identified suspicious activity and suspended withdrawals. The news of the exchange’s suspension caused the price of BTC to plunge by 20%!
Mt. Gox discovered that more than 850,000 bitcoins (6% of the total bitcoins in circulation at that time) were lost. It later recovered 200,000 bitcoins, but the remaining 650,000 missing bitcoins (with an estimated value of more than $450 million) pushed the company into insolvency.
Mt. Gox filed for bankruptcy in the Tokyo District Court, claiming a debt of $63.6 million, and was ordered to liquidate in April 2014.
"We had weaknesses in our system, and our bitcoins vanished. We've caused trouble and inconvenience to many people, and I feel deeply sorry for what has happened," said chief executive Mark Karpeles at a Tokyo press conference.
The future of Mt Gox
Since the 2014 collapse, the impacted investors have been involved in a legal battle to recover their funds. And BTC's dramatic price increase in the years after Mt. Gox's collapse raised the stakes further.In November 2021, it was announced that its creditors would receive over $8.9 billion in repayments related to the 2014 collapse. It’s likely that those affected will receive compensation in Q1 or Q2 of 2022.
According to Mt. Gox trustee, Nobuaki Kobayashi, the settlement plan filed by Tokyo District Court is now “final and binding.”
A crazy story, right? Will 2022 bring closure to the victims of Mt. Gox's collapse?
Disclaimer: NOT FINANCIAL NOR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make, and only you are accountable for the results.
Continue reading by joining Cryptonary Pro
$1,197/year
Get everything you need to actively manage your portfolio and stay ahead. Ideal for investors seeking regular guidance and access to tools that help make informed decisions.
For your security, all orders are processed on a secured server.
As a Cryptonary Pro subscriber, you also get:
3X Value Guarantee - If cumulative documented upside does not reach 300% during your 12-month membership, you can request a full refund.
24/7 access to experts with 50+ years’ experience
All of our top token picks for 2025
On hand technical analysis on any token of your choice
Weekly livestreams & ask us anything with the team
Daily insights on Macro, Mechanics, and On-chain
Curated list of top upcoming airdrops (free money)
3X Value Guarantee
If cumulative documented upside does not reach 300% during your 12-month membership, you can request a full refund.
Our track record speaks for itself
With over 2.4M tokens and widespread misinformation in crypto, we cut through the noise and consistently find winning assets.
Our track record speaks for itself
With over 2.4M tokens and widespread misinformation in crypto, we cut
through the noise and consistently find winning assets.
Frequently Asked Questions
Can I trust Cryptonary's calls?
Yes. We've consistently identified winners across multiple cycles. Bitcoin under $1,000, Ethereum under $70, Solana under $10, WIF from $0.003 to $5, PopCat from $0.004 to $2, SPX blasting past $1.70, and our latest pick has already 200X'd since June 2025. Everything is timestamped and public record.
Do I need to be an experienced trader or investor to benefit?
No. When we founded Cryptonary in 2017 the market was new to everyone. We intentionally created content that was easy to understand and actionable. That foundational principle is the crux of Cryptonary. Taking complex ideas and opportunities and presenting them in a way a 10 year old could understand.
What makes Cryptonary different from free crypto content on YouTube or Twitter?
Signal vs noise. We filter out 99.9% of garbage projects, provide data backed analysis, and have a proven track record of finding winners. Not to mention since Cryptonary's inception in 2017 we have never taken investment, sponsorship or partnership. Compare this to pretty much everyone else, no track record, and a long list of partnerships that cloud judgements.
Why is there no trial or refund policy?
We share highly sensitive, time-critical research. Once it's out, it can't be "returned." That's why membership is annual only. Crypto success takes time and commitment. If someone is not willing to invest 12 months into their future, there is no place for them at Cryptonary.
Do I get direct access to the Cryptonary team?
Yes. You will have 24/7 to the team that bought you BTC at $1,000, ETH at $70, and SOL at $10. Through our community chats, live Q&As, and member only channels, you can ask questions and interact directly with the team. Our team has over 50 years of combined experience which you can tap into every single day.
How often is content updated?
Daily. We provide real-time updates, weekly reports, emergency alerts, and live Q&As when the markets move fast. In crypto, the market moves fast, in Cryptonary, we move faster.
How does the 3X Value Guarantee work?
We stand behind the value of our research. If the documented upside from our published research during your 12-month membership does not exceed three times (3X) the annual subscription cost, you can request a full refund. Historical context: In every completed market cycle since 2017, cumulative documented upside has exceeded 10X this threshold.
Recommended from Cryptonary
