What Historical Examples Exist of Major Security Breaches on Custodial Exchanges?

Several major security breaches on custodial exchanges have occurred throughout crypto history. One of the most famous is the 2014 Mt. Gox hack, which resulted in the loss of hundreds of thousands of bitcoins and led to the exchange's collapse.

Another significant event was the 2019 hack of Binance, where hackers stole a large amount of Bitcoin from the exchange's hot wallet. More recently, the FTX collapse, while not a direct hack, highlighted the risks of mismanagement and lack of transparency in custodial platforms, leading to massive user losses.

These events underscore the security risks of centralized custody.