On February 7, 2014, Mt. Gox, the largest Bitcoin exchange at the time, announced that it had suffered a security breach.
The exchange had been hacked, and 850,000 Bitcoins (worth $473 million at the time) had been stolen. This was devastating for the Bitcoin community, and the price of Bitcoin fell sharply in the aftermath.
Mt. Gox tried to recover from the hack, but it was unable to do so. The exchange filed for bankruptcy in Japan on February 28, 2014. In the months that followed, more details about the hack emerged.
It became clear that Mt. Gox had been mismanaging its funds and that the hack was just the final straw.
The Mt. Gox hack was a major setback for Bitcoin, but it eventually recovered. The price of Bitcoin is now higher than it was before the hack occurred.
However, Mt. Gox is no longer operational and its founder, Mark Karpeles, is facing criminal charges in Japan.