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🥁$1.77 Billion Lost in a Blink! How did 61,000 BTC Vanish?

Tornado Cash co-founder arrested, FTX bankruptcy costing $1.5 million daily, and more!

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The BEN Team
August 24, 2023

Read time: 4 minutes

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🥁 $1.77 Billion Lost in a Blink! How did 61,000 BTC Vanish?

Nope, this time wasn´t SBF…

Let’s dive into the wild, untold stories of early Bitcoin exchanges 🔍

Bitcoinica

Created by 17-year-old Zhou Tong, Bitcoinica introduced margin trading and shorting to Bitcoin. It quickly became a magnet for traders, with transaction volumes soaring past almost every other exchange 🚀

But security was Bitcoinica’s Achilles' heel. In March 2012, its hosting provider, Linode, was hacked, leading to a loss of 43,000 BTC for Bitcoinica (worth $1.25 billion today at $29K/BTC) 😱

The nightmare didn’t end there. In May 2012, Bitcoinica was hacked again, leading to a further loss of 18,000 BTC (worth $522 million today!) This time, the loss was too great. Bitcoinica was forced to shut down 📉

Mt. Gox

Mt. Gox was the King of Bitcoin exchanges, handling over 3 million BTC per month. Hacked in 2011, it later filed for bankruptcy. Kraken stepped in to aid Mt. Gox users in recovering lost funds.

MyBitcoin

MyBitcoin, a major online wallet provider, vanished in 2011, taking 51% of its users' stored Bitcoins with it. A stark reminder of the risks of centralized wallets 🚫

These stories aren't just history - they're lessons. They shaped the crypto space, pushing for better security, transparency, and user education.

"Not Your Keys, Not Your Coins." 🔑 is a mantra in the crypto community, emphasizing the importance of holding your own private keys.

We've come far, but the journey continues...

🚀 Want to stay ahead in the crypto world and learn from the past to secure your future? Sign up for BEN Learn! We break down and discuss complex blockchain topics, making them digestible and understandable for all. 🧠💡

Meme Break 😌

Trending News 🗞️

1- Tornado Cash co-founder charged and arrested by the DOJ Tornado Cash's DOJ drama unveils a sinister link to North Korean cyber gangs. Is this DeFi's hidden dark side?

2- FTX Bankruptcy: Daily Legal Costs Mount to $1.5 Million, Raising Concerns Among Creditors
With legal costs already hitting $200 million in just seven months for the FTX bankruptcy case, one has to wonder: will the creditors ever see their money?

3- Thailand's Incoming Prime Minister Has Ties to Crypto – Here's What You Need to Know
With Thailand's new PM linked to crypto investments, is the nation now set to become a crypto powerhouse?

4- With another crypto exchange set to halt US staking, what’s next for the segment?
Bitstamp and Kraken bow to US regulations on staking, while Coinbase and Binance defy the SEC. Are decentralized protocols the future of staking?

5- Four Bills That Will Define The Future Of Digital Assets
With four major US bills targeting digital assets, are we gearing up for a crypto revolution or just more red tape? 🤔🚀📜 How will these shape the future of crypto in America?

6- The future of BTC mining and the Bitcoin halving
With the Bitcoin halving looming, is BTC set for a skyrocket or a crash? 📉🚀

7- Bitcoin Price Poised to Reach Next All-Time High in Mid-2025: Pantera Capital
A rally post-2024 halving, taking BTC to a potential $148K high by mid-2025! 🚀 Based on past halvings, are we on the brink of another major BTC surge?

8- Central banks globally roll back balance sheets – quantitative tightening pace heightened
As liquidity dries up, what's the ripple effect on interest rates, assets, and cryptos?

9- Balancer says $2.8M still at risk after vulnerability warning
With Balancer's $2.8M vulnerability alert, it's a stark reminder that DeFi's promise of decentralization doesn't always equate to security.

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