Adam Back: Crypto repeating custody failures that doomed FTX, Mt. Gox

Adam Back, a cryptographer and the CEO of Bitcoin infrastructure developer Blockstream, argued that the collapses of FTX and Mt. Gox stemmed from the structural problem of exchanges holding customer assets while also conducting trades. Speaking at the BTC Prague 2026 conference, Back emphasized the need to separate trading and custody, stating that the industry continues to repeat these same failures. He advised that it is best for long-term investors to hold their assets directly and avoid using leverage. Back shared a personal anecdote, recalling that he lost BTC during the Mt. Gox bankruptcy after redepositing funds on the exchange to chase a 10% arbitrage opportunity, learning that the high returns were a reflection of high risk. He recommended that retail investors use self-custody for their long-term holdings and avoid borrowing against their BTC for additional purchases, as this increases liquidation risk. Back added that he has weathered all three of BTC's bear markets and views the 200-week moving average, around $61,000, as a key support level.