Certified Bitcoin Professional Practice Exam

What was the outcome of the Mt. Gox hack?

1. Loss of user trust

2. Massive Bitcoin theft

3. Increased transaction fees

4. Legal penalties for the exchange

The correct answer is: Massive Bitcoin theft

The outcome that highlights the impact of the Mt. Gox hack is the massive theft of Bitcoin. This incident, which occurred in 2014, resulted in the loss of approximately 850,000 Bitcoins, a significant portion of the total supply at the time. The breach highlighted vulnerabilities in the security of cryptocurrency exchanges and underscored the importance of robust security measures in protecting user assets. The massive theft did have ripple effects on the cryptocurrency market, leading to a loss of user trust in exchanges, as many users felt their investments were unsafe. This was compounded by the fact that some users were unable to recover their funds, which caused lasting repercussions in terms of reputation for not just Mt. Gox, but other exchanges as well. While there were indeed legal consequences for Mt. Gox and regulatory scrutiny increased across the industry, the defining event was the scale of the Bitcoin theft itself, which directly affected thousands of users and the industry as a whole.