Mt gox only?

[robertcarlyle]

Would it be fair to say that only mt gox had hacking/security issues in the early days of exchanges?  What about other early exchanges?  Can we rule them out by 100 that they were immune to such problems?  What legal recourse did people have in the early days of exchanges if their money vanished?

[_act_]

There are many exchanges that have been hacked. This happens every year.

Hacked Exchanges since 2011

The thread was last edited in 2021. There has been several exchanges that have been hacked after.

[serjent05]

There are lots of exchanges that were hacked in the early days of Bitcoin history but the most popular was Mt. Gox.  News was everywhere back then and there are also and some media sensationalized this hacking by reporting people committing suicide because they lost all their money on that hack.

When it comes to hacking security issues, it won't be fair to say only Mt, Gox has that issue, when an exchange is hacked, it automatically points to its security lapses, thus all the hacking incident have something to do with the companies security, may it be an inside job or the other way around.

[Despairo]

Do you think now people can take legal resource if they lost their money in exchanges?

I've heard many people lost their money in exchanges due to bankrupt or hacked, but the exchanges didn't refund anything.

Even now we heard few exchanges/sites willing to refund the money to the creditors, but I would take it as lost if I have coin in centralized exchanges. The good thing in Bitcoin is we have choice, either be your own bank or trust it to someone.

[Ziskinberg]

Meron ding mga exchanges na nahack before pero hindi lang masyadong popular kasi Mt Gox was really the most popular that time they dominated the market.

Some of the exchanges that were hacked are

Bitcoinica  -- Exchange Site Bitcoinica Hacked, US$90,000 Stolen

Hackers compromised one of the team members` email servers and then hijacked 18,547 Bitcoins from the online wallet.

That was only valued $90,000 that time but its $1.8 billion already at the current price.

bitfloor--- Bitfloor Hacked, $250,000 Missing

itfloor, the fourth largest exchange dealing in US dollars, has just announced[1]that it has been hacked, and the service has taken a loss of 24,000 BTC, worth about $250,000 at the time of the theft.

Price now valued at $2.3 billions.

[FortuneFollower]

Do you think now people can take legal resource if they lost their money in exchanges?

I've heard many people lost their money in exchanges due to bankrupt or hacked, but the exchanges didn't refund anything.

Even now we heard few exchanges/sites willing to refund the money to the creditors, but I would take it as lost if I have coin in centralized exchanges. The good thing in Bitcoin is we have choice, either be your own bank or trust it to someone.

The possibility is still there, though, honestly speaking, most out there would still use CEXes to do daily operations or trade.
Surely, the catch would be to get only the funds you will be working with on them, all the rest should be on the cold wallet / other secure means of storage.

[BenCodie]

There were an abundance of experiments gone wrong, services that were hacked and simply scams back in the original days of Bitcoin. People thought it was anonymous and technology wasn't as resilient as it is today. It would have been the wild west in the early days and even when I discovered Bitcoin and became active here there was a lot of things going wrong in the ecosystem...it's just the process of maturity I suppose.

Meron ding mga exchanges na nahack before pero hindi lang masyadong popular kasi Mt Gox was really the most popular that time they dominated the market.

Some of the exchanges that were hacked are

Bitcoinica  -- Exchange Site Bitcoinica Hacked, US$90,000 Stolen

Hackers compromised one of the team members` email servers and then hijacked 18,547 Bitcoins from the online wallet.

That was only valued $90,000 that time but its $1.8 billion already at the current price.

bitfloor--- Bitfloor Hacked, $250,000 Missing

itfloor, the fourth largest exchange dealing in US dollars, has just announced[1]that it has been hacked, and the service has taken a loss of 24,000 BTC, worth about $250,000 at the time of the theft.

Price now valued at $2.3 billions.

It's confronting to see those numbers at that period of time at the current value. It's going to be even more so when it's $18 billion and $23 billion, and so on 

[Dunamisx]

Would it be fair to say that only mt gox had hacking/security issues in the early days of exchanges?  What about other early exchanges?  Can we rule them out by 100 that they were immune to such problems?  What legal recourse did people have in the early days of exchanges if their money vanished?

There have been several occurrence of hacks on exchanges, just that we are not been informed of their occurrence doesn't means such never exist, after all, Mt. Gox was the first to experience its kind as at that time, it should be expected to be more louder even than every other one that happened after its own incident.

[robertcarlyle]

Did cold wallet exist in the early days of exchanges?  What other secure offline options were there at the time when the very first exchanges went online as to avoid a mt gox scenario?  Why does mt gox receive so much attention yhen?  Why cant we say other exchanges that went online at around the same time also came under scrutiny and shared similar problems?

[Stalker22]

Did cold wallet exist in the early days of exchanges?  What other secure offline options were there at the time when the very first exchanges went online as to avoid a mt gox scenario?  Why does mt gox receive so much attention yhen?  Why cant we say other exchanges that went online at around the same time also came under scrutiny and shared similar problems?

Yes, of course cold storage existed even in the early days.  It was one of the few ways to truly secure your Bitcoin.  Like paper wallets for example.

Mt. Gox gets a lot of attention because it was one of the biggest and most well-known exchanges at the time.  It served a large percentage of Bitcoin users so of course many were affected by the hack.

[robertcarlyle]

But if cold storage, paper wallets existed in early 2010 then why did MANY people complain about mt gox if they knew that cold storage, paper wallets would be a more secure way to store their bitcoins and didnt have the initiative to take such precautions?  What about new liberty standard?  I heard that bitcoinmarket had allegations of fraud just to name a few... im confused here

[franky1]

mtgox had about 450k btc in 2011 where it was ~25k hotwallet... ~425k coldwallet

the first announced hack only got to steal 25k btc from the hotwallet
mtgox proved it had control of coldwallets of ~425k by moving coin
https://www.blockchain.com/explorer/transactions/btc/3a1b9e330d32fef1ee42f8e86420d2be978bbe0dc5862f17da9027cf9e11f8c4

other hack/vulnerability
the events of learning that over years mtgox "lost 750k coin" by 2014, was due to a vulnerability where a hacker leached out amounts over a number of years from the small hot wallet, which over time replenished and emptied and amounted to alot of coin combined

[nullama]

Would it be fair to say that only mt gox had hacking/security issues in the early days of exchanges?  What about other early exchanges?  Can we rule them out by 100 that they were immune to such problems?  What legal recourse did people have in the early days of exchanges if their money vanished?

I think the issue here is that in the early days there were very few exchanges.

Now, there are multiple ones, and stakes are higher these days.

Still, many hacks still continue to happen. And in some cases, it's literally the people in charge who have the keys to all the coins who actually just take the coins.

You can't really do anything about it because:

Not Your Keys, Not Your Coins

Your Bitcoins should be only briefly at the exchanges, and you should withdraw as soon as possible, before you can't

[DannyHamilton]

But if cold storage, paper wallets existed in early 2010

Cold storage has existed for as long as Bitcoin has existed.

then why did MANY people complain about mt gox if they knew that cold storage, paper wallets would be a more secure way to store their bitcoins and didnt have the initiative to take such precautions?

People are dumb. They do dumb things.

What about new liberty standard?

What about it?

I heard that bitcoinmarket had allegations of fraud just to name a few... im confused here

In the early days of Bitcoin, there was a LOT of fraud, there was a lot of hacking, and there was a lot of attempted businesses losing their financial backing. People lost Bitcoins to such services all the time.
Sometime law enforcement got involved (especially if it was a large enough amount lost), but often they didn't understand it well enough to be able to do anything about it.

[tread93]

There are many exchanges that have been hacked. This happens every year.

Hacked Exchanges since 2011

The thread was last edited in 2021. There has been several exchanges that have been hacked after.

Man 4 years since the last update! I think we need to find a better source here. Have the exchange hackings slowed down due to more of an emphasis on security or are these recent hacks you speak of just not being reported / updated? I am curious to know now.