Nikolas Sargeant
Mt. Gox, the defunct Japanese Bitcoin exchange, has begun repaying creditors with Bitcoin and Bitcoin Cash a decade after its infamous 2014 collapse. The exchange briefly announced the commencement of repayments on its website before removing the post.
Link is showing 404 now for some reason pic.twitter.com/WDVjQWpcVd
— db (@tier10k) July 5, 2024
According to the now-deleted statement, Mt. Gox has started distributing funds to "some" creditors through designated cryptocurrency exchanges, in accordance with the rehabilitation plan. The exchange advised other eligible creditors to remain patient, indicating that further repayments would be made once certain conditions are met.
This development follows years of legal proceedings and asset recovery efforts triggered by Mt. Gox's collapse. In 2018, approximately 200,000 Bitcoins were recovered, leading to a protracted rehabilitation process overseen by a court-appointed trustee. Creditors have endured multiple delays in the compensation process.
The crypto community is closely monitoring the details of the repayment plan, including the proportion of assets to be distributed and the timeline for completion. On Thursday, Mt. Gox transferred Bitcoin worth $2.7 billion to a new wallet address, marking its first significant transaction since May, following several smaller test transactions the previous day.
This repayment initiative aims to compensate users who lost funds during the exchange's collapse, potentially bringing closure to one of the most notorious incidents in cryptocurrency history.
