140,000 Bitcoins in Liquidation? Mt.Gox Creditors Receive Yen Compensation with Repayment Deadline Extended to October 2024

After a 10-year wait, bankrupt cryptocurrency exchange Mt.Gox has finally begun repaying its creditors. Several Mt.Gox creditors have recently stated on Reddit that they are receiving compensation from Mt.Gox through PayPal in Japanese yen. This comes after the recent announcement that repayment would begin soon. Mt.Gox, which went bankrupt in 2014 after losing 850,000 bitcoins to a hacker attack, opened registration for creditors to claim their funds last year. The deadline for registration was April 6th. The bankruptcy trustee, Nobuaki Kobayashi, previously sent emails to creditors stating that cash compensation would begin in 2023 and continue in 2024, without specifying exact payment schedules. However, after a month, Mt.Gox creditors have started receiving payments through PayPal, as confirmed by users on Reddit. Users initially thought the emails were phishing scams but later confirmed the actual payments in their PayPal accounts. This marks the beginning of compensation for these victims after a decade of waiting. The earliest payment was reported on December 21st, when an anonymous Japanese user received a payment in yen to their bank account via bank transfer. The repayment deadline has been extended to October next year. Mt.Gox’s repayment plan includes basic repayment, mid-term repayment, and early lump-sum repayment. The repayment deadline for creditors was changed from October 31st, 2023, to October 31st, 2024. However, for creditors who have provided necessary information, repayment will be made in order by the end of this year. Concerns were previously raised that the repayment of 140,000 bitcoins by Mt.Gox could cause significant selling pressure on bitcoin. However, UBS analysts believe that the repayment will not have a major impact on bitcoin prices due to the multiple repayment options and timeframes provided to creditors. Additionally, most Mt.Gox creditors are cryptocurrency enthusiasts and are unlikely to sell their bitcoins. Nevertheless, reports of payments being received in yen suggest that Mt.Gox may have secretly liquidated its assets during this time.