In a recent post on X, Farina revisited the infamous 2014 collapse of Mt. Gox, one of the most catastrophic events in cryptocurrency history, as a cautionary example for modern investors.

Study Mt. Gox (BTC Collapse in 2014).

An inside job in which 850,000 BTC were “lost”. Customers didn’t get back their Crypto.

They got USD equivalents based on Bitcoin’s price at the time of the collapse, around $400.

BTC exploded to $20,000+, and Mt. Gox trustees held…

— EDO FARINA 🅧 XRP (@edward_farina) April 27, 2025

According to Farina, the loss of approximately 850,000 Bitcoins during the Mt. Gox debacle remains a critical lesson in the risks of third-party custodianship. Many users at the time were left with little recourse after the exchange abruptly halted operations, citing vague technical issues. Farina argued that the circumstances surrounding the disappearance of the funds pointed to internal foul play rather than an honest mistake.

Those who failed to secure their Bitcoin outside of Mt. Gox lost access to their holdings and missed the immense growth that followed. When the exchange went offline, Bitcoin was trading around $400. The asset recently crossed $110,000, and some investors are yet to recover all their assets.

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Partial Recovery and Long-Term Impact

The platform’s trustees maintained possession of a significant portion of the recovered assets, delaying repayment for years. Although some progress has been made through a civil rehabilitation process, Farina noted that the damage had already been done. By mid-2024, the trustees had returned over 140,000 BTC and additional assets to creditors.

However, the vast majority of users only regained a small portion of what they originally lost. Many were compensated in fiat currency, calculated using Bitcoin’s value at the time of the collapse. Others received partial repayments in digital currency, including Bitcoin and Bitcoin Cash.

Estimates suggest that users recovered roughly 15% of their original holdings. For affected individuals, this meant that for every 100 BTC lost, they might have received only 15 BTC, significantly undercutting potential long-term gains, particularly considering Bitcoin’s price at the time of distribution in 2024 had risen to around $63,000.

The Lesson for XRP Investors

Farina connected the lessons of Mt. Gox directly to today’s XRP investors, stressing the importance of self-custody in an increasingly volatile exchange landscape. Farina recently advised XRP holders to transfer their assets to cold wallets, and high-profile failures like the 2022 collapse of FTX and the earlier demise of QuadrigaCX reinforce this stance.

Self-custody solutions such as the Xaman wallet (formerly Xumm) are good options for software-based storage, and a har

dware wallet like Ledger that keeps private keys offline can eliminate the risk of third-party compromise.

More News;

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Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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The post Expert Strongly Warns XRP Holders: Avoid A Replica of Mt. Gox (Bitcoin) Collapse appeared first on Times Tabloid.

A report by Chainalysis suggested that this withdrawal is the largest made by BTC-e since April 2018. The report says that both BTC-e and WEX, an exchange regarded that BTC-e’s successor, sent small amounts of BTC to Russian electronic payments service Webmoney on October 26 before making a test payment on November 11, followed by 100 BTC on November 21.

Read Also: Binance CEO To Crypto Community: Bitcoin (BTC) Is Not Dead. We Are Still Here

Out of the total amount sent, 9,950 BTC is thought to still be located in personal wallets, while the rest was moved through intermediaries before ending up at four deposit addresses in two large exchanges.

Ki Young Ju, the co-founder of the blockchain analytics firm Cryptoquant, also verified the report, stating that may represent sell-side liquidity because they were sent to exchanges.

In a tweet on November 24, Young Ju shared screenshots of the transaction, pointing out that the BTC has been dormant for over seven years.

Ki Young Ju tweeted, “7-year-old 10,000 BTC moved today. No surprise, it’s from criminals, like most of the old Bitcoins. It’s the BTC-e exchange wallet related to the 2014 Mt. Gox hack. They sent 65 BTC to @hitbtc a few hours ago, so it’s not a gov auction or something.”

7-year-old 10,000 $BTC moved today.

No surprise, it's from criminals, like most of the old Bitcoins. It's the BTC-e exchange wallet related to the 2014 Mt. Gox hack.

They sent 65 BTC to @hitbtc a few hours ago, so it's not a gov auction or something.https://t.co/6LnCxFAJfX https://t.co/YdPrvJafxY pic.twitter.com/Sp2higUqbq

— Ki Young Ju (@ki_young_ju) November 24, 2022

In the same thread of tweets, Young Ju called on the crypto exchange HitBTC to suspend the account for suspicious activity.

Read Also: Billionaire Tim Draper Explains Why He Believes Bitcoin (BTC) Will Surpass $250,000 in the Long Run

About Mt. Gox

Mt. Gox was a Tokyo-based crypto exchange that once accounted for over 70% of Bitcoin transactions. In 2014, the exchange was hacked with thousands of Bitcoin stolen, the exchange filed for bankruptcy shortly after.

BTC-e, which had its servers located in the United States, had its website shut down and funds seized by the Federal Bureau of Investigation (FBI) in 2017 after allegations that it was involved in money laundering, including crypto stolen during the Mt. Gox exchange hack.

According to Chainalysis, at the time of its shutdown BTC-e still held “a substantial amount of Bitcoin,” and in April 2018 moved over 30,000 BTC out of its service wallet.

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The post Dormant 10,000 BTC Linked to the Hacked Mt. Gox Moved to Various Wallets After Over 7 Years appeared first on Times Tabloid.