Guardians in Chaos: How Cold Wallets Shielded Investors during Major Exchange Crises - A Riveting Top 7 Guide

The Mt. Gox Crisis and the Rise of Cold Wallets

In 2014, the Mt. Gox Bitcoin exchange, handling over 70% of all Bitcoin transactions worldwide, declared bankruptcy following a massive hack. The hackers had targeted the exchange's hot wallets, leading to the loss of 850,000 Bitcoins. This incident served as a wake-up call for many investors who began to see the value in cold wallets. While many investors lost their assets in the Mt. Gox crisis, those who had stored their Bitcoins in cold wallets were shielded from the disaster.