Could genAI have prevented the fall of Mt. Gox if it existed in 2011? Mark Karpelès, former CEO of the stock exchange, has just conducted a fascinating experiment that makes you think.
Karpelès posted the original code for Mt. Gox from 2011 to Claude AI from Anthropic. Result? A devastating analysis that called the platform “critically unsafe” and pinpointed the vulnerabilities that led to the first major breach.
Electronic autopsy after 13 years
In a post on X, Karpelès revealed that he had sent AI (Claude from Antropic) not only the source code, but also GitHub history, access logs and data leaked by the hacker himself. Claude had no mercy – although he appreciated the engineering skills of Jed McCaleb (the founder of the exchange), who created an advanced platform in just 3 months, he also listed critical security errors.
Karpelès took over Mt. Gox in March 2011, purchasing the exchange from McCalebа. Three months later, an attack occurred – 2,000 BTC flowed from the platform.
I didn’t have a chance to check the code before taking over. It was dumped on me immediately after signing the contract. Now I know better – due diligence is essential
– he admitted with an awareness that was over a decade late.
What went wrong?
The AI analysis identified a real technological Molotov: faulty code, lack of documentation, weak admin and user passwords, plus retained access of previous administrators after the change of ownership. The spark was a hack of Karpelès’ WordPress blog and social media accounts.
Paradoxically, some changes made between the takeover and the attack actually mitigated the effects. Upgrading to the hash algorithm, patching SQL vulnerabilities, and properly securing withdrawals all prevented tens of thousands of BTC from being drained by the $0.01 withdrawal limit exploit.
Lesson for the future?
While AI could spot specific errors in the code, the real problem lay deeper – poor internal processes, weak passwords, and lack of network segmentation. A blog hack should not pose a threat to the entire stock exchange.
Despite its collapse over a decade ago, Mt. Gox continues to cast a shadow over the market. The exchange still holds approximately 34,689 BTC before the repayment deadline on October 31. Fortunately, the refunds to creditors so far have not made a dent in the price of BTC – fears of a mass sale turned out to be exaggerated.
