Nearly a decade after the collapse of the Mt. Gox cryptocurrency exchange, creditors may finally receive some relief. In an email sent to rehabilitation creditors on Wednesday, the trustee overseeing the Mt. Gox bankruptcy estate, Nobuaki Kobayashi, announced plans to commence repayments in 2023, with the process extending into 2024.
The email provided details about the repayment timing and logistics based on the rehabilitation plan approved by the Tokyo District Court in February 2021. This court order marked the conclusion of a years-long legal battle and set the stage for compensating Mt. Gox creditors.
The rehabilitation plan involves repaying creditors approximately 141,686 BTC (nearly $5.2 billion at current prices) and 143,000 Bitcoin Cash (BCH) ($31.2 million), assets from the Mt. Gox estate. With Bitcoin’s price substantially higher now compared to 2014, creditors stand to receive more value despite the coins lost.
The Long Wait May Soon Be Over for Mt. Gox Creditors
As per the email, Kobayashi is making efforts to begin cash repayments within 2023. The varying types of repayments, large creditor pool, and processing times mean the exact timing of individual payments remains undetermined, however.
Mt Gox is beginning sales pic.twitter.com/WJbj1nrEO9
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Creditors are currently not required to take any action prior to repayment. The email directs creditors to the online claims filing system to confirm their status and ensure that registered information is approved and valid. Repayment method and destination details must be completed for creditors to receive funds.
Collapse and Aftermath of the Infamous Crypto Hack
The collapse of Mt. Gox in 2014 after a hack resulted in the loss of approximately 650,000 to 850,000 Bitcoins, some belonging to the exchange and others to creditors. The missing cryptocurrency was valued in the hundreds of millions, leading Mt. Gox to file for bankruptcy protection in Japan.
For years, creditors have awaited compensation through a complex legal battle. Mt. Gox ultimately located only around 200,000 of the lost Bitcoins. Now, with the rehabilitation plan in place, creditors can hope to finally obtain some repayment, although specifics are still uncertain.
The announcement marks a major milestone in compensating victims of one of the largest crypto exchange hacks to date. For creditors who endured years of waiting, the news that the repayment process is slated to begin in 2023 will come as a relief. The exact timing and logistics are still unclear, but the end of this prolonged saga appears to be in sight.
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