2025-12-30 17:25:34

A cautionary tale from crypto's early days: Bitcoinica, the pioneering margin trading exchange launched by then-16-year-old developer Zhao Tong, became a cautionary tale when it collapsed spectacularly. The platform lost 146.5 trillion IDR and suffered the theft of approximately 99,000 Bitcoin—a massive security breach that shook the young industry.

What made Bitcoinica noteworthy initially was its bold introduction of leverage trading when most exchanges were still basic spot trading platforms. However, inadequate security infrastructure proved fatal. The incident highlighted a critical lesson: innovative features mean nothing without robust safeguards.

This chapter in crypto history reminds us why institutional-grade security, proper fund custody, and transparent risk management have become non-negotiable standards for modern exchanges.

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ForkItAllDay

· 01-02 17:19

Leverage trading at 16... how should I put it, the courage is really big, but this is indeed a warning for those who come after.

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GateUser-c799715c

· 01-02 16:42

It's truly outrageous for a 16-year-old to engage in leverage trading, and as a result, the safety measures didn't keep up, leading to a total explosion. 90,000 Bitcoins are just gone... --- Full of creativity but zero execution, this is the story of Bitcoinica. No matter how powerful the features, without safety measures, it's all pointless. --- Honestly, who could have imagined safety being so crucial back then? Now, exchanges have finally learned their lesson. --- 99,000 Bitcoins... How much would that be worth now? Just thinking about it makes me feel heartbroken. Unfortunately, the timing was not right.

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MEVEye

· 2025-12-30 17:51

99,000 Bitcoins are gone just like that; even a 16-year-old genius can't save poor security... Truly incredible.

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GhostInTheChain

· 2025-12-30 17:40

99,000 Bitcoins... That's an astronomical number nowadays. This guy started a trading platform at 16 years old; his idea was impressive, but unfortunately, he didn't prioritize security first.

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