Regulatory action

Mt.Gox Exchange Collapse

Tokyo-based exchange handling 70%+ of global Bitcoin trading loses 850,000 BTC to theft spanning years, files bankruptcy in February 2014.

Losses

$500M

Affected

~24,000

Started

Feb 2014

Collapsed

Feb 2014

Timeline

2010-2013: Accumulated theft begins but goes undetected as Mt.Gox internal controls fail

February 7, 2014: Mt.Gox halts all BTC withdrawals citing 'technical issues'

February 24, 2014: Website goes offline entirely

February 28, 2014: Mt.Gox files for bankruptcy protection in Tokyo. 850,000 BTC (~7% of all BTC in existence) reported missing

2017: 200,000 BTC found in an old Mt.Gox cold wallet; sold off piecemeal, triggering market drops

2024: First creditor distributions begin, 10 years after collapse. Creditors receive partial in-kind BTC plus cash, eventually ~20% of original value at current prices

Evidence

Verified via: Tokyo District Court bankruptcy filings, Kraken's independent audit as court-appointed trustee, on-chain analysis of wallet movements in 2017, and Reuters/NHK investigative reporting.

Lessons for you

Not your keys, not your coins — 850,000 BTC vanished while 'safely stored' on the exchange
Regulatory insurance does not cover crypto exchanges in most jurisdictions
Exchange withdrawal delays are the #1 leading indicator of insolvency
Bankruptcy recovery takes 5-10+ years even for the most high-profile cases