In a momentous development long awaited by the Mt. Gox community, reports are pouring in across various social media platforms, affirming the successful receipt of payments by Mt. Gox creditors. According to Reddit accounts, Mt. Gox is remitting fiat currency [Japanese yen] to individuals who suffered losses of Bitcoin in the 2014 incident. Payments have been observed through PayPal transactions as well as bank transfers.
While an official confirmation from Mt. Gox is pending, the repayment deadline has been extended to October 2024. Nevertheless, there have been indications that certain early repayments might occur “before the end of this year,” and recent evidence suggests that this anticipation is materializing.
A Reddit user ecstatically shared, “I just got money!” dispelling initial concerns of a phishing attempt and confirming the legitimacy of the Japanese yen received. Another user disclosed receiving a partial payment of 30,283 yen, equivalent to $200 at the present exchange rate, for their 0.125 Bitcoin claim, with an outstanding balance of approximately $748.
Repayments to creditors are structured to occur in multiple phases, encompassing the base repayment, early lump-sum repayment, and intermediate repayment, offering relief to those who have patiently awaited returns on their investments since Mt. Gox’s collapse in 2014.
This development brings solace to creditors who, for years, have anticipated a return on their investments. In 2014, Mt. Gox suffered a severe setback, losing over 800,000 bitcoins valued at around $460 million at that time due to a hacking incident, leading to the exchange’s downfall.
Mt. Gox’s Repayments Might Extend Till 2024
Mt. Gox, once a prominent Bitcoin exchange facilitating over 70% of all Bitcoin transactions, declared bankruptcy in 2014 following the loss of 740,000 Bitcoins in a hack.
The exact timeline for repayments to individual creditors remains uncertain. However, Nobuaki Kobayashi, the rehabilitation trustee, has assured creditors they can track the repayment status in the claim filing system. Initial repayments are anticipated to be made in cash, with the potential for subsequent repayments in Bitcoin or other cryptocurrencies.
While repayments may extend into 2024 due to the considerable number of rehabilitation creditors, the announcement of cash repayments represents a significant stride forward for Mt. Gox and its creditors.