In a long-awaited development, Mt. Gox, the defunct bitcoin exchange that collapsed in 2014, has announced plans to begin repaying creditors in cash. The rehabilitation trustee, Nobuaki Kobayashi, stated in an email to creditors that repayments will commence “shortly” within the 2023 calendar year.
The move comes as a relief to creditors who have been waiting for years to see a return on their investments. In 2014, Mt. Gox lost over 800,000 bitcoins, worth approximately $460 million at the time, in a hack that led to the exchange’s collapse.
The exact timing of repayments to individual creditors is still undetermined, but Kobayashi has said that creditors can check the repayment status in its claim filing system. The first round of repayments is expected to be made in cash, with the possibility of future repayments in bitcoin or other cryptocurrencies.
The rehabilitation trustee has also noted that repayments will likely continue into 2024 given the large number of rehabilitation creditors. However, the announcement of cash repayments is a significant step forward for Mt. Gox and its creditors.
Mt. Gox Bankruptcy: Brief Overview
Mt. Gox was founded in 2010 and quickly became the world’s leading bitcoin exchange. At its peak, the exchange handled over 70% of all bitcoin trades worldwide. However, in early 2014, Mt. Gox suspended trading and filed for bankruptcy protection after revealing that it had lost over 800,000 bitcoins in a hack.
The loss of these bitcoins was a major blow to the bitcoin community, and it led to a significant decline in the price of bitcoin. However, the bitcoin market has since recovered, and bitcoin is now worth over $16,000 per coin.
The repayment process for Mt. Gox creditors is expected to be complex and lengthy. The rehabilitation trustee has said that it will take time to verify all claims and distribute the funds. However, the announcement of cash repayments is a positive sign for creditors, and it suggests that they may finally see a return on their investments.
The news that Mt. Gox will begin repaying creditors is a welcome development for those who lost money in the exchange’s collapse. The exact timing of repayments is still undetermined, but the announcement of cash repayments is a significant step forward. It will be interesting to see how the repayment process unfolds in the coming months and years.