Darknet Diaries

Ep 9: The Rise and Fall of Mt. Gox

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Dec 15, 2017
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INSIGHT

Bitcoin Basics Explained

  • Bitcoin is a decentralized, anonymous, and transparent digital currency not tied to any country.
  • Transactions are processed by anyone who shares computing power, earning small bitcoin rewards.
ANECDOTE

Mt. Gox's Origin Story

  • Jed McCaleb started Mt. Gox in 2010 after repurposing the domain from a card game exchange.
  • Mt. Gox quickly became the dominant bitcoin exchange, handling 70% of all bitcoin transactions at its peak.
ANECDOTE

Early Major Bitcoin Theft

  • Thieves stole the Mt. Gox hot wallet containing 80,000 bitcoins early after Mark Karpelès took ownership.
  • The thief returned most bitcoins except 3,000, allegedly negotiating to avoid investigation.
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