He bought 260,000 #Bitcoin for $0.01 each
His exchange ERASED the trade
The TRAGIC STORY of Kevin Day, who lost $16 billion in the biggest crypto rollback in history 👀
1/ Kevin Day was a 1990s geek from Nebraska.
A video game developer, he worked on classics like Mortal Kombat 4, NBA Showtime, and NFL Blitz.
He even once met Luke Skywalker himself – Mark Hamill
2/ In his spare time, Kevin worked on the internet.
When his startup closed in the Dot-Com Crash, he went on hosting websites.
That’s what attracted him to #Bitcoin – he loved the freedom of web culture.
3/ Kevin joined #Bitcoin when the price was $7
BTC was on a tear – up from $0.30
He was frantically trying to mine BTC
4/ Then, on June 19, 2011 – Kevin got the opportunity of a LIFETIME
#Bitcoin CRASHED from $17 to $0.01 –– in just 20 minutes
Here’s what it looked like in real time
5/ While others were freaking out, Kevin took action.
He bid to buy $3,000 worth of #Bitcoin.
The price? $0.0101
6/ Kevin bought 259,684 BTC for UNDER $3,000
When the price bounced back – it was a 166,000% gain
Here’s Kevin explaining the $5 MILLION he made
7/ But Kevin’s luck didn’t last long
The flash crash was due to an exchange hack – a hacker had stolen the coins, then sold them to crash the market.
Mt. Gox quickly announced it would "roll back" the trades.
8/ It wasn't a great time to hold your #Bitcoin on an exchange.
A week earlier, Mt. Gox. reported 25,000 BTC stolen
The exchange was now blaming THEIR OWN AUDITOR!
9/ A rollback meant all trades after the hack would be canceled – including Kevin's
Other buyers who put in legitimate orders – buying hundreds of #Bitcoin for PENNIES… saw 0 BTC balances.
They were angry and upset
10/ Now, before the roll back, Kevin made a small withdrawal
Of the 260,000 he bought, he withdrew 643 BTC – the most allowed by the exchange's own policies
This would only add to the controversy...
11/ As #Bitcoin users asked for answers, Kevin was among the few who stepped forward.
He believed his trade was legitimate.
He went on a web TV show to defend himself.
12/ In Kevin’s mind, he wasn’t responsible for his exchange’s security.
Mt. Gox never refunded any individuals who were hacked
He thought a rollback set a dangerous precedent.
13/ #Bitcoin users were torn
Many thought that Kevin was the Mt. Gox. hacker
They called him a thief
14/ Others defended him and urged him to call a lawyer.
Some claimed Kevin had stepped up…
One user called him a “hero”
15/ Lawyers advised Kevin to sue Mt. Gox.
But he pushed back. He didn't want to tank the Bitcoin economy.
He put Bitcoin over his own personal profit 👏
16/ The debate centered around one key idea
Should exchanges be held to the same standards as Bitcoin?
Unfortunately, most don't give users any rights to their coins – here's @Nneuman explaining the dangers
17/ Ultimately, Mt. Gox would do what was in its best interest – erasing all the trades.
Kevin lost 259,360 #Bitcoin
But he learned a valuable lesson – never leave your coins on an exchange
✨
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