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The trustee overseeing the restitution process for the defunct crypto exchange, Mt. Gox, is making progress towards Bitcoin repayments.
Recent reports indicate that the trustee has been actively engaging with creditors to validate their identities and verify the existence of their accounts. Numerous Mt. Gox creditors have disclosed receiving updated emails from the exchange, signaling the completion of identity verification procedures for crypto exchange accounts slated for Bitcoin and Bitcoin Cash repayments.
Mt. Gox Trustee Advances Repayment Plans
An email shared on Mt. Gox’s insolvency hub on Reddit on January 22 revealed that a crypto exchange referenced in the user’s rehabilitation claim has successfully confirmed account ownership with the trustee.
As a result, the exchange is now gearing up to acknowledge the user’s subscription for agency receipt, facilitating repayment in BTC/BCH.
Confirmation emails from the Mt. Gox trustee have been acknowledged by several Reddit contributors, with a noteworthy proportion of these confirmations stemming from Bitstamp.
A small subset of Kraken users has also declared receipt of the confirmation email, contrasting with the larger portion of such clients who have not yet received it.
The latest development came almost a month after some Mt. Gox creditors who opted for PayPal as their preferred payment method began receiving their Bitcoin and Bitcoin Cash balances in Japanese Yen (JPY).
Some users even received double payments and raised concerns about whether the Mt. Gox rehabilitation trustee would take measures to address the payments.
October 2024 Deadline
Mt. Gox was founded in 2010 and once held the title of the world’s largest Bitcoin exchange, overseeing approximately 70% of all BTC transactions before its collapse.
It faced a severe setback in 2014 when it experienced a security breach, resulting in the loss of 850,000 BTC – an incident that marked one of the most significant crypto bankruptcies to date.
Four years later, Mt. Gox initiated civil rehabilitation proceedings to compensate users for the losses they had incurred.
As part of its restitution plan, Mt. Gox anticipates reimbursing creditors with 142,000 BTC and 143,000 BCH. Additionally, the repayment includes a sum of 69 billion Japanese yen, equivalent to $510 million, and is slated to be completed by October 2024.