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Post-Mortems

Crypto Case Studies

Structured post-mortems of the major exchange collapses, bridge exploits, smart-contract failures, governance attacks, and depegs. Each entry covers the timeline, the mechanism that caused the failure, operational lessons, and primary-source citations. Read them to internalise patterns that have repeated across the industry.

Exchange Collapse
2022-11-11$8B+ customer funds

FTX Collapse

November 2022 — second-largest crypto exchange collapses in days; founder convicted of fraud and conspiracy.

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Depeg / Stablecoin Collapse
2022-05-09$40B+ market cap destroyed

TerraUSD (UST) & LUNA Collapse

May 2022 — algorithmic stablecoin death-spiral wipes out $40B+ across UST and LUNA in roughly 72 hours.

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Exchange Collapse
2014-02-28~850,000 BTC (~$450M at the time; $50B+ at 2024 prices)

Mt. Gox Collapse

February 2014 — at the time the largest Bitcoin exchange in the world goes bankrupt with ~850,000 BTC missing. Recovery proceedings continue a decade later.

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Smart Contract Exploit
2016-06-17~3.6M ETH (~$60M at the time; over $10B at 2024 prices)

The DAO Hack

June 2016 — reentrancy exploit drains $60M from The DAO and triggers Ethereum's contentious hard fork that created ETH and ETC.

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Bridge Exploit
2022-03-23173,600 ETH + 25.5M USDC (~$625M at the time)

Ronin Bridge Hack

March 2022 — North Korean state-sponsored attackers drain $625M from the Axie Infinity sidechain bridge. Largest crypto theft to date.

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Bridge Exploit
2022-02-02120,000 wETH (~$325M at the time)

Wormhole Bridge Exploit

February 2022 — $325M drained from Wormhole's Solana–Ethereum bridge via a signature-verification bug. Jump Crypto immediately backstopped the loss.

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Fund Collapse
2022-07-13$4.7B+ customer claims

Celsius Network Insolvency

June–July 2022 — crypto lender pauses withdrawals, files Chapter 11; founder Alex Mashinsky later indicted by DOJ.

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Fund Collapse
2022-06-27$3.5B+ unsecured loans defaulted

Three Arrows Capital (3AC) Collapse

June–July 2022 — Singapore-based crypto hedge fund defaults on ~$3.5B; ordered into liquidation; founders flee.

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Fund Collapse
2022-11-28~$1.3B liquidity gap (Chapter 11)

BlockFi Bankruptcy

November 2022 — crypto lender files Chapter 11 ten days after FTX collapse; cascade culmination of the 2022 lender failures.

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Fund Collapse
2023-01-19~$3B liquidity gap (Chapter 11)

Genesis Trading Bankruptcy

January 2023 — DCG-subsidiary crypto lender files Chapter 11; Gemini Earn cross-exposure plus 3AC default; eventual $1B+ SEC settlement.

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Exchange Collapse
2019-01-31~$190M CAD

QuadrigaCX Collapse

January 2019 — Canadian crypto exchange collapses after founder's death allegedly takes private keys; ~$190M CAD missing.

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Smart Contract Exploit
2017-11-06~513,000 ETH (still frozen)

Parity Multisig Freeze

November 2017 — accidental kill() on shared library contract freezes ~513,000 ETH across hundreds of Parity multisig wallets; EIP-999 rejected.

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Bridge Exploit
2022-08-01~$190M

Nomad Bridge Exploit

August 2022 — optimistic-bridge verification bug enables 'free-for-all' looting; ~$190M drained by hundreds of copycat addresses.

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Bridge Exploit
2023-07-14$130M+ stuck

Multichain Collapse

July 2023 — cross-chain protocol freezes after CEO Zhaojun's arrest in China; $130M+ stuck and unrecoverable; ambiguous insider-exit vs theft.

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Smart Contract Exploit
2022-10-11~$117M

Mango Markets Exploit

October 2022 — Avraham Eisenberg manipulates MNGO oracle via flash-loan-funded price moves; ~$117M drained; later convicted of commodities fraud.

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Smart Contract Exploit
2023-03-13$197M (80% recovered)

Euler Finance Exploit

March 2023 — donateToReserves bug + flash loans drain $197M; attacker subsequently returns ~80% via on-chain negotiation.

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Governance Attack
2022-04-17$182M

Beanstalk Farms Governance Attack

April 2022 — flash-loan-funded governance takeover passes malicious BIP-18; $182M drained in a single transaction.

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Exchange Collapse
2016-08-02~120,000 BTC stolen (~$72M at time, billions at recovery)

Bitfinex 2016 Hack and 2022 Recovery

August 2016 — 120,000 BTC stolen from Bitfinex multi-sig; February 2022 — DOJ seizes ~94,000 BTC and arrests Ilya Lichtenstein and Heather Morgan.

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