After years of waiting, creditors of defunct Bitcoin exchange Mt. Gox are about to receive significant refunds. Mt. Gox, which was once responsible for 70% of BTC transactions between 2010 and 2014 before closing due to a major hacker attack, is finalizing the process of returning funds to its creditors. The payment includes 142,000 Bitcoins (BTC) and 143,000 Bitcoin Cash (BCH), as well as nearly 70 billion yen and considerable amounts in other cryptocurrencies and fiat currencies.
How did the news reach former Mt. Gox users?
The announcement of this compensation to creditors came in an email from Mt. Gox’s bankruptcy trustee. Lenders, who lost their funds during the hack in 2014, will begin receiving their refunds this year, with payments extending until 2024. The total value of 142,000 BTC equates to about $5.18 billion, while the 143,000 BCH is worth approximately $31.5 million.
Some MtGox creditors received email from the bankruptcy trustee stating that the trustee plans to start repaying creditors soon and is working to start repaying them in cash in 2023 and will continue into 2024. Mt Gox will distribute 142,000 BTC, 143,000 BCH, and 69 billion yen,… pic.twitter.com/gWW29Zycl1
— Wu Blockchain (@WuBlockchain) November 22, 2023
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Payments extend until 2024, ending long wait for creditors
Initially, the appointed trustee, Nobuaki Kobayashi, had set October 31 of this year as the starting date for payments. However, in September, there was a significant delay, pushing this date back to October 31, 2024. This change of plans generated some uneasiness among creditors, who have been waiting for a resolution for years.
At the same time, the cryptocurrency community is also paying attention to the next Bitcoin halving event, scheduled for April next year. Experts, such as those from the “Bitcoin Archive” account, speculate that BTC could reach up to US$220,000 after the halving. This will result in a significant increase in its value.
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This moment is crucial for the cryptocurrency market, as in addition to the expected increase in the value of Bitcoin, the return of these large volumes of BTC and BCH can influence the market in several ways. Mt. Gox, despite no longer being operational, continues to have a significant impact on the cryptocurrency market. This ends up highlighting the importance of robust security measures and transparent management in crypto exchanges.
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