Key facts
- In 2011, a hacker exploited a stolen auditor password.
- The hacker targeted the Mt. Gox exchange.
- Bitcoin's price crashed from $17 to $0.01.
- The exchange rolled back all transactions.
- The incident occurred on this day in 2011.
On this day in 2011, a significant security breach occurred on the Mt. Gox cryptocurrency exchange, leading to a drastic devaluation of Bitcoin. A hacker gained access to the exchange's systems by exploiting a stolen auditor password. This unauthorized access allowed the hacker to manipulate the market, causing Bitcoin's price to collapse from approximately $17 down to a mere $0.01. In response to the incident and to prevent further fallout, the Mt. Gox exchange implemented a rollback of all transactions that had occurred. This event serves as an early illustration of the security risks and extreme price volatility inherent in nascent cryptocurrency markets and exchanges.