coinspress.com
Mt. Gox, the bankrupt Japanese crypto exchange, is set to begin repaying creditors with Bitcoin and Bitcoin Cash starting in July 2024.
This announcement caused a market reaction, with Bitcoin’s price dipping below $61,000. According to Rehabilitation Trustee Nobuaki Kobayashi, the exchange will distribute 142,000 BTC and 143,000 BCH, which amounts to over $8 billion. The trustee emphasized that they have taken measures to ensure secure and compliant repayments, urging creditors to remain patient as the process unfolds.
This repayment plan is a major development for creditors who have been waiting since 2014, when Mt. Gox suffered a massive hack resulting in the loss of 850,000 Bitcoin, now worth over $57 billion. The exchange filed for bankruptcy and began rehabilitation proceedings in 2018.
The process has faced numerous legal hurdles, causing prolonged uncertainty for users regarding the recovery of their funds. Last year, some repayments were made, and certain creditors even received double payments, signaling progress.
Speculation about the repayment intensified last month when the crypto community noticed the movement of assets held by the Rehabilitation Trustee for the first time in five years. Despite initial fears that the trustee was selling off its substantial Bitcoin holdings, it was clarified that these transactions were part of the preparations to repay creditors.
This structured repayment plan aims to bring closure to one of the longest-running sagas in the cryptocurrency world, providing long-awaited relief to affected Mt. Gox users.