On June 19, 2011, Bitcoin saw a dramatic crash on Mt. Gox, the only venue for trading at the time, which caused its price to plummet close to $0.01. The incident involved the theft of around 2,000 BTC, attributed to a hacker who exploited weak passwords of compromised accounts. This culminated in a coordinated sell-off of hundreds of thousands of bitcoins. At the time, Bitcoin had peaked at over $26 in early June, but trading was disrupted as the hacker was able to offload more than $1.5 million in BTC. Despite the chaos, Mt. Gox's withdrawal limits contained some damage, allowing the platform to roll back transactions before the hack. This incident highlighted significant vulnerability issues within the exchange and set a precedent for future security measures in cryptocurrency trading.

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