The Mt. Gox incident – the largest bitcoin hack ever

An American software developer named Jed McCaleb founded a platform in 2006 named Magic: The Gathering Online eXchange. He set up the platform for secure exchange of trading cards used in a video game by the same name, using the domain name mtgox.com. This platform allowed cards to be bought and sold like stocks.

Some quarters say that it was this underlying technology of trading imaginary cards securely that formed the basis of bitcoins. Although McCaleb never released the original code written by him for Mt. Gox, it is true that the bitcoin technology is similar to such card exchange technology. It is also in popular notion that the anonymous author of the Bitcoin paper,1 Nakamoto, is probably McCaleb himself.

It is important at this juncture to understand how the bitcoin and blockchain works. I would recommend you to go through my earlier post on What are bitcoins / cryptocurrency / blockchain – what is so different than fiat money?

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