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The creditors of the defunct cryptocurrency exchange Mt. Gox have reportedly begun to receive payments of their claims ten years after the platform collapsed due to insolvency.
According to several posts and comments on Reddit, creditors who chose PayPal as their preferred mode of payment have started receiving their Bitcoin (BTC) and Bitcoin Cash (BCH) balances in Japanese Yen (JPY).
Mt. Gox Creditors Receive Payments
One user in the Mt. Gox insolvency subreddit, named Mat Phillips, revealed that he received 30,283 JPY ($212) in his PayPal account for a claim of 0.125 in BTC and BCH. Per his claim form, Phillips is supposed to receive a total of 106,502 JPY ($747), so he asked if more payments would be made.
Community members assured Phillips and other users making similar inquiries that more payments would be made and all claims would be resolved with time.
On the other hand, some users got paid twice and inquired if the Mt. Gox rehabilitation trustee would take steps to resolve the double payments.
“Um… I think I got paid twice? I received two transactions, each of which seems equal to the total of the BTC/BCH Non-allotment (JPY) amounts. So… Merry… Christmas…?” commented one creditor.
Payment to End by October 2024
The Mt. Gox payments came as a Christmas surprise to creditors, who had lost hope of recovering their claims after so many years. The Mt. Gox trustee has extended the repayment deadline for the creditors several times, with the last date fixed on October 31, 2024. Community members suggested that users who registered on time without errors be paid by the end of 2023, but there was no guarantee.
Mt. Gox fell into troubled waters in 2011 after being hacked for 25,000 BTC. The exchange, handling roughly 70% of Bitcoin transactions at the time, lost an extra 750,000 BTC via another hack in 2014. The events led to the platform’s collapse, which affected about 24,000 creditors, and four years later, it began civil rehabilitation proceedings to compensate its users for their losses.
Despite the hacks, the defunct firm still boasts 142,000 BTC, 143,000 BCH, and 69 billion JPY in assets.