- Mt. Gox to start Bitcoin and Bitcoin Cash repayments to creditors by July 2024.
- 142,000 BTC and 143,000 BCH will be distributed, resolving long-standing claims.
- Mt. Gox’s repayment plan signals a significant step forward in addressing its collapse.
Creditors of the defunct cryptocurrency exchange Mt. Gox are finally set to receive long-awaited repayments in Bitcoin (BTC) and Bitcoin Cash (BCH), starting in early July 2024, as announced by the rehabilitation trustee.
The rehabilitation plan includes distributing 142,000 BTC, 143,000 BCH, and 69 billion Japanese yen (approximately $432 million) to affected creditors. The distribution will utilize top global exchanges to enhance security. Creditors have already seen updates in their claims accounts, detailing repayment status and amounts due. Some have even received fiat currency in their bank accounts as part of initial repayment efforts.
The trustee has dedicated significant effort to implementing technical measures and establishing agreements with various cryptocurrency exchanges to safeguard repayments and comply with financial regulations. These measures aim to prevent issues that may arise when distributing large sums of money. Kobayashi emphasized that the exchange and confirmation processes must be finalized before repayments can commence.
The recent consolidation of 141,686 BTC into a single wallet marks the first significant on-chain movement from Mt. Gox wallets in over five years. This movement indicates the trustee’s readiness to begin repaying creditors, many of whom have waited since the exchange’s collapse in 2014. The consolidation, along with updates in creditors’ accounts, strongly suggests that repayments will proceed as scheduled.
Despite the optimism, some creditors remain cautious. The repayment process, scheduled to conclude by October 31, 2024, faced several delays in 2023. However, recent updates and preparatory measures have renewed hope that creditors will finally receive their due compensation.
The Mt. Gox collapse was a pivotal event in cryptocurrency history. At its peak, Mt. Gox handled over 70% of all Bitcoin transactions worldwide. The exchange’s fall, following a massive security breach, affected approximately 24,000 creditors and resulted in the loss of 850,000 BTC. The forthcoming repayments represent a crucial step in resolving one of the longest-standing issues in the crypto industry.
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