Today, February 24, 2025, marks 11 years since the hack of Mt. Gox, once the largest cryptocurrency exchange in the world. As we reflect on lessons learned, a recent $1.400 billion attack on Bybit reopens the debate on persistent challenges in the crypto industry.
11 years ago, the cryptocurrency world was shaken by one of the most tragic events in recorded history: the Mt. Gox hack. This cryptocurrency exchange lost 850.000 bitcoins, valued at $450 million at the time, due to a combination of technical vulnerabilities and weak management practices. The impact was devastating, as the price of bitcoin plummeted, and trust in cryptocurrency platforms collapsed.
Years after this event, the cryptocurrency industry has grown exponentially, but challenges remain. On February 21, 2025, Bybit, one of the most prominent exchange platforms in the sector, was the victim of a hack that, although smaller in the amount of cryptocurrencies stolen, exceeded in nominal value that of Mt. Gox. Bybit attackers stole $1.400 billion worth of Ethereum (ETH), a timely reminder that centralization remains an Achilles heel despite technological advances.
Recall that the Bybit hack, now considered the largest in cryptocurrency history, occurred due to a sophisticated attack that compromised one of the platform's cold wallets. Although the platform implements advanced security measures, such as the use of multi-signature wallets, interface manipulation and social engineering allowed hackers to bypass these protections, highlighting the vulnerabilities inherent in centralized systems.
Mt. Gox: The collapse that changed the history of cryptocurrencies
Founded in 2010, Mt. Gox emerged as the world's largest bitcoin exchange. At its peak, it handled more than 70% of global cryptocurrency transactions. However, its success was plagued by serious governance and security issues.
The 2014 hack, which resulted in the loss of 850.000 bitcoins, was the final blow for the platform. Investigations revealed that attackers had been exploiting a vulnerability known as «transaction malleability», which allowed transaction records on the blockchain to be modified. Although Mt. Gox managed to recover 200.000 bitcoins, the damage was already done.
The collapse of Mt. Gox had a profound impact on the crypto community. Many investors lost their savings, and the credibility of cryptocurrencies was severely shaken. However, the event also served as a catalyst for the adoption of more robust security practices in the sector.
PREPARE YOUR WALLETMt. Gox Refunds
The history of Mt. Gox is not only defined by the massive hack that led to its downfall, but also by the refund process that has been in place for over a decadeWhile refunds have not been able to return all of the money users have lost, they do represent a significant effort to offer some form of compensation.
The refund process officially began in 2023, almost ten years after the hack. During this time, creditors have faced multiple delays and complications, including changes in payment methods and the need to comply with strict legal procedures, so it was not until early July 2024 that some users began receiving their refunds. However, others have had to continue waiting to receive their payments, as the initial date of the refund plan was extended to October 31 of this year.
On the other hand, the total amount of refunds has been remarkable, with thousands of bitcoins and other cryptocurrencies being distributed among those affected. However, the amount received by each user has been only a fraction of the original value of their investments, due to the depreciation of cryptocurrencies and the costs associated with the liquidation process.
Bybit hack rewrites records
On February 21, 2025, Bybit, one of the largest exchange platforms on the market, suffered an unprecedented hack. The attackers stole $1.400 billion worth of digital assets, including 401.346 ethers. Although the number of stolen cryptocurrencies is smaller compared to Mt. Gox, their nominal value far exceeds the 2014 hack.
Reports revealed that the attack targeted Bybit's Ethereum cold wallet and that It was the work of the Lazarus group, a hacking team linked to North Korea and known for its high-level cyber operations.
BUY BITCOINHowever, unlike the Mt. Gox hack, Bybit has shown greater transparency and speed in its response. The platform’s CEO, Ben Zhou, assured that the remaining cold wallets are safe and that withdrawals are being processed normally. In addition, other platforms and major players in the sector are supporting Bybit to mitigate the financial impact and maintain liquidity. In a recent interview, Zhou assured that he has secured a “bridge loan” from unidentified partners that has allowed him to cover around 80% of the ETH stolen in the hack, while collaborating with different actors to recover the stolen funds.
lessons learned
While the Bybit hack is a reminder that risks remain, it also shows that the industry has made significant progress in many ways. Unlike Mt. Gox, which operated in a largely unregulated environment with poor security practices, Bybit operates in a more mature and guarded ecosystem. However, its hack also reveals that the challenges remain similar. Exploitation of technical vulnerabilities y the persistence and sophistication of hacker groups are problems that continue to impact the crypto world.
The main lesson from Mt. Gox was the importance of transparency, regulation, and the implementation of robust security measures. In the case of Bybit, the responsiveness and transparent communication with users have been key to minimizing damage to the platform’s reputation.
Reports suggest that after the hack was confirmed, some $5.500 billion was withdrawn from the platform, leading many to call it the bank run of the largest hack in crypto history.
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Security in the cryptocurrency industry
So the Bybit hack, which occurred just days before the anniversary of the Mt. Gox collapse, acts as a timely reminder that security must remain the number one priority in the cryptocurrency industry. While technological advancements have significantly improved protective measures, attackers are also evolving their tactics.
To prevent a repeat of such incidents, platforms are expected to further invest in cutting-edge technologies and strengthen cooperation with investigative agencies and regulatory authorities, all in order to create a safer environment for users and continue building an ecosystem that is more resilient and trustworthy.
TRADE WITH STABLECOINSInvesting in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
