Creditors of Mt. Gox Finally Receiving Repayments After Long Wait
Repayment of Mt. Gox Bitcoin Exchange Victims Begins after 8 Years
After a long and agonizing wait, victims of the defunct Bitcoin exchange, Mt. Gox, have finally started receiving repayments for their lost Bitcoin. The good news was shared on Reddit, where several users confirmed that they had received refunds in Japanese Yen through PayPal. Trustee Nobuaki Kobayashi had recently announced his plan to initiate repayments in cash in 2023, with more payments scheduled for 2024.
The Collapse of Mt. Gox
Mt. Gox, once a prominent Bitcoin exchange, shocked the world when it declared in February 2014 that it had lost about 850,000 Bitcoins, which were valued at approximately $450 million at the time. The exchange also disclosed that an additional 100,000 Bitcoins were missing, bringing the total to around 950,000 Bitcoins. The exact cause of the theft remains unclear, but it is believed that a combination of factors, including inadequate security measures and possible insider theft, played a role.
The Impact on Mt. Gox’s Creditors
The loss of such a substantial number of Bitcoins had a profound effect on Mt. Gox’s creditors, many of whom had entrusted their Bitcoins to the exchange with the expectation of easy withdrawal in the future. Unfortunately, the collapse of the exchange left their funds trapped on the platform. Creditors have been patiently waiting for years to recover their lost funds, with some resorting to legal action against Mt. Gox and its former CEO, Mark Karpeles.
Recently, the creditors received an email from Mt. Gox, informing them that repayments would commence in 2023 and continue into 2024. Trustee Nobuaki Kobayashi has diligently worked to distribute cash to the creditors, following the distribution of 142,000 BTC, 143,000 BCH, and 69 billion yen in assets. The distribution process prioritizes the repayment of long-waiting creditors and those who have suffered significant losses due to the exchange’s bankruptcy.
Tags: Crypto news