Mt. Gox and Bitcoin Exchanges: Did You Know?

[Cryptopher]

Did You Know?

until they got hacked

"hacked"

Gox is exactly why any exchange worth its salt needs to be audited.

[stomachgrowls]

I don't think people have the idea that the biggest exchanges are unhackable.

Oh man, you don't underestimate how clueless a lot of people are. Even here on Bitcointalk, I'm still seeing a good number of people using exchanges like Binance because it's "SAFU" *shudders*. And don't even get me started with people on social media sites.

Honestly, im bit irritated with that common Binance line "Funds are SAFU". They are just too confident on that one and lets not forget about the past on that
Binance Hack: https://www.wired.com/story/hack-binance-cryptocurrency-exchange/

About Mt. Gox, im aint early enough to witness this exchange and the tragedy happen on this platform and those tremendous amount of Bitcoin
but for sure that most of veteran member at least aware of this Mt.Gox incident.

[mk4]

By this argument every major tech company should have been hacked by now but somehow they are doing just fine. Just because the person running Mt.Gox was a rube doesn't mean being hacked is inevitable.

It might not be technically inevitable, but it's a great way to look at things security wise. Especially when explaining to newbies.

I have kept hundreds of bitcoins on addresses with unencrypted private keys stored in email/txt files on the cloud for years and the only times I've had bitcoin stolen was when I handed it right over.

Not because it hasn't happened to you it doesn't mean it wouldn't happen to a lot of people. People getting their funds stolen through storing their keys anywhere unencrypted isn't anything new now.

Gox is exactly why any exchange worth its salt needs to be audited.

Exchanges, especially the bigger one such as Binance, are surely getting audited. It's just that being audited even by the best firms doesn't ensure 100% security.

[XZERO1]

By this argument every major tech company should have been hacked by now but somehow they are doing just fine. Just because the person running Mt.Gox was a rube doesn't mean being hacked is inevitable. I have kept hundreds of bitcoins on addresses with unencrypted private keys stored in email/txt files on the cloud for years and the only times I've had bitcoin stolen was when I handed it right over.

Incidents like that reminds you that no matter how good these exchanges are in terms of security, there's no guarantee that they won't get hacked in the future, specially if you're using them as a personal wallet or bank and keeping your funds there for a long-term, many exchanges have some kind of an insurance on funds these days so it might not get that bad if it happens again to a known exchange, but it's something to be careful about.

Unless you're a trader you have no reason to keep any funds on exchanges any way, so why would you take any risk with that even if likelihood of that happening to another exchanges is 0.01% or less.

[slaman29]

Um yeah:) We know about Mt Gox. And if you don't know about Mt Gox, then you really need to read up. They aren't the first and not the last, and for sure we will continue to read more and more about hacks and steals and scams.

But careful. Even in defi, keys are yours but code is not. Rug pulls also happen without your keys so I'd definitely not trust anything I don't understand or have no control over!