July 22, 2024
Mt. Gox Trustee to Repay Bitcoin and Bitcoin Cash in July
Latest Cryptocurrency News

Mt. Gox Trustee to Repay Bitcoin and Bitcoin Cash in July

Mt. Gox, the cryptocurrency exchange that lost 850,000 Bitcoin in investor funds in 2014, will start repaying its defunct users. According to a written note issued by the exchange on June 24, Mt. Gox’s rehabilitation trustee will begin processing repayments in Bitcoin (BTC) and Bitcoin Cash (BCH) starting in July 2024.

“The Rehabilitation Trustee will commence the repayments in Bitcoin and Bitcoin Cash in due course to the cryptocurrency exchanges with which the Rehabilitation Trustee has completed the exchange and confirmation of the required information for implementing the repayments.”

The trustee has requested users to remain patient, noting that the order of payments will depend on the respective cryptocurrency exchange.

“We will commence the repayments in the order of the cryptocurrency exchanges with which the Rehabilitation Trustee will complete the exchange and confirmation of the required information. Please wait for a while until the repayments are made.”

Long-Awaited Repayments and Significant Debt

More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 creditors of Mt. Gox. These creditors have been waiting for over 10 years to recover their funds following the exchange’s collapse in 2014 due to multiple unnoticed hacks. Mt. Gox’s repayment plans have been among the most closely watched developments in the industry, with users anxiously awaiting reimbursement for their lost BTC.

On May 28, the exchange transferred 141,686 BTC worth $9.62 billion into a new wallet, “1Jbez,” from several other cold wallets associated with the exchange.

Mt. Gox wallet “1Jbez” Source: CoinStats

This transfer marks the first on-chain movement of funds from the collapsed exchange in over five years. Following these reports, Mt. Gox rehabilitation trustee Nobuaki Kobayashi confirmed that the consolidation is part of the exchange’s plans to start repaying creditors, though he did not specify when repayments would begin.

“The Rehabilitation trustee is preparing to make repayment for the portion of cryptocurrency rehabilitation claims to which cryptocurrency is allocated… As the Rehabilitation trustee is proceeding with the preparation for the above repayments, please wait for a while until the repayments are made.”

History of Mt. Gox and Ongoing Challenges

Mt. Gox was one of the earliest cryptocurrency exchanges, once facilitating more than 70% of all trades within the blockchain ecosystem. The exchange went offline in 2014 after a security breach resulted in a loss of over 850,000 BTC in user funds, worth over $51.9 billion at current Bitcoin prices above $61,100. In February 2014, shortly after the exchange went offline, Bitcoin’s price fell to a local low of $420. Mt. Gox was reportedly hacked six times between 2011 and 2014.

Despite the announcement from Mt. Gox’s rehabilitation trustee, the current repayment deadline could face further delays. Initially set for September 2023, the deadline was extended a month before Mt. Gox was scheduled to repay creditors by October 31, 2023. The complexity of the repayment process and the large number of creditors involved add to the uncertainty surrounding the timeline for these long-awaited repayments.

Image by Gerd Altmann from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

Related posts

Crypto Community Claps Back at SEC Chair Gensler’s Compliance Critique

Kevin Wilson

Abra Settles in Texas, Agrees to Refund Crypto Loans

Anna Garcia

12 People to Determine Former FTX CEO Sam Bankman-Fried’s Destiny

Kevin Wilson

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.