Creditors of the bankrupt exchange Mt. Gox have recently reported that they have received cash repayments and updated progress on Bitcoin repayments. It is expected that by October of this year, Mt. Gox will pay a total of 142,000 bitcoins, 143,000 BCH, and 69 billion yen to the creditors.
(Table of Contents:
Update on Bitcoin and Fiat Repayments by Mt. Gox
Mt. Gox Expected to Pay Creditors 142,000 Bitcoins by the End of the Year
Will this Cause a Bitcoin Dump?
Recap of the Mt. Gox Incident
)
(Background:
What has happened to Mt. Gox, the once dominant Bitcoin exchange in recent years?
)
Article Index
Mt. Gox Updates Bitcoin and Fiat Repayment Information
Mt. Gox Expected to Pay Creditors 142,000 Bitcoins by the End of the Year
Will this Cause a Bitcoin Dump?
Recap of the Mt. Gox Incident
Mt. Gox, once the world’s largest Bitcoin exchange, was hacked in 2014, resulting in the theft of 850,000 bitcoins (valued at approximately $460 million at the time). Now, after 10 years, the compensation process is gradually progressing.
Mt. Gox Updates Bitcoin and Fiat Repayment Information
Several Mt. Gox creditors have recently reported to the media that their creditor accounts have been updated, including repayment status, amounts already repaid, and amounts yet to be repaid. (The image below shows that cash repayment was completed on 2/20)
Image Source: Mt. Gox insolvency hub
Another creditor has also posted on Reddit, stating that they have received compensation:
Mt. Gox Expected to Pay Creditors 142,000 Bitcoins by the End of the Year
According to the latest data released by Mt. Gox, the balance of bitcoins held in the trustee address for liquidation is 137,890. It is expected that by October of this year, Mt. Gox will pay a total of 142,000 bitcoins, 143,000 BCH, and 69 billion yen (approximately $510 million) to the creditors. Although there is a significant difference in the compensation that Mt. Gox creditors will receive in terms of cryptocurrency, the value of Bitcoin has increased by about ten times in the past 10 years, and it is currently near its all-time high. Once more than 140,000 BTC is returned to investors, it may cause short-term selling pressure and bring volatility to the Bitcoin market.
Recap of the Mt. Gox Incident
Mt. Gox, a cryptocurrency exchange launched in 2010, once handled nearly 75% of all Bitcoin transactions. However, in February 2014, the company suffered a hack that resulted in the loss of 850,000 bitcoins, leading to bankruptcy and catastrophic losses for investors. Since the bankruptcy, the bankruptcy litigation process has been ongoing to seek compensation for users affected by Mt. Gox’s bankruptcy. The bankruptcy trustee hopes to compensate these users for their losses using the bitcoins held by the exchange, rather than compensating them in the equivalent value of fiat currency at the time. Therefore, after 10 years, the progress of this compensation case has been slow.
It was not until October 2022 that Mt. Gox announced the opening of creditor registration for claims, with 140,000 bitcoins waiting to be delivered for repayment. In November of last year, the Mt. Gox bankruptcy trustee announced plans to start making initial cash payments to creditors starting from 2023, with continued payments expected in 2024. In January of this year, Mt. Gox announced the commencement of unlocking bitcoins for repayment to creditors.
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