Mt. Gox Will Start Paying Out Bitcoin July 2024, Creditors Cheer
6/25/20242 min read
Mt. Gox, a Japanese crypto exchange that went bankrupt due to a hack, will start returning Bitcoin (BTC) and Bitcoin Cash (BCH) to its creditors starting July 2024. This announcement has already affected the market, causing the price of Bitcoin to fall below US$61,000.
Official Statement from the Rehabilitation Trustee
In a statement on June 24, Nobuaki Kobayashi, Rehabilitation Trustee of the exchange, detailed the return process:
“The Rehabilitation Trustee will initiate returns in Bitcoin and Bitcoin Cash in due course to crypto exchanges that have completed the exchange and confirmed the information necessary to execute the return,” said Kobayashi, reported by Crypto Slate.
The company plans to return 142,000 BTC and 143,000 BCH to creditors, totaling more than US$8 billion. This return marks an important step for creditors of Mt. Gox, who have waited almost a decade to get their assets back.
rustee stressed that the bankrupt exchange had taken considerable time to ensure a safe and reliable return to creditors.
This includes implementing technical solutions for secure returns, complying with financial regulations in various countries and coordinating return arrangements with crypto exchanges.
Therefore, the trustee urges users of failed crypto platforms to please wait a moment for refunds to be made.
New Hope for Creditors of Mt. Gox
The development provides a glimmer of hope for creditors who have been caught in a lengthy legal battle since the collapse of Mt. Gox in 2014. The exchange experienced a major hack that resulted in the loss of 850,000 Bitcoins, currently worth more than US$57 billion.
fter the hack, Mt. Gox filed for bankruptcy and began rehabilitation proceedings in 2018 to compensate creditors.
The refund process faced numerous legal challenges, creating prolonged uncertainty for users about recovering their funds. However, there have been promising signs of progress in recent years.
Last year, the company made several returns, with reports indicating that some creditors received double payments.
Bitcoin Return Speculation
Speculation about BTC's impending return began last month after members of the crypto community observed movements in assets held by Rehabilitation Trustees for the first time in five years.
At the time, the trustee denied rumors that they were selling sizable Bitcoin holdings, around 140,000 BTC, worth US$9 billion. Instead, they explained that the transaction was part of preparations to repay creditors.
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