Mt. Gox Creditors Finally Getting Paid After 10 Years, What A Special Christmas

 

• Mt. Gox creditors have reportedly started receiving repayment of their bitcoins that got stuck on the exchange.
• In 2014, more than 24,000 users’ Bitcoin holdings were trapped on Mt.Gox when the firm collapsed.
• Many creditors holding a PayPal account have received Japanese-Yen-denominated repayments.

Creditors of long-failed cryptocurrency exchange Mt. Gox have finally started receiving payments for their Bitcoin (BTC), which has been locked up on the exchange since February 2014.

Mt.Goxから弁済されてました！
最終弁済を選択したので、中間弁済だと思われます。
ちょうど10年かかりましたね。 pic.twitter.com/qDntG5Wssg

— びりある#全財産DeFi@𝐜𝐫𝐲𝐩𝐭𝐨𝐠𝐫𝐚𝐩𝐡𝐞𝐫 (@visvirial) December 21, 2023

On Dec. 25, on the mtgoxinsolvency Reddit page, users speculated that Mt.Gox was sending refunds in Japanese yen through PayPal – almost ten years after the funds were blocked on the exchange on Feb. 24, 2014.

In particular, one of the Reddit users, Free-end254, stated that he received payments and attached a screenshot with confirmation from PayPal. 

Another user also confirmed receipt of funds, noting that he initially mistook the message for phishing.

Another creditor who had both Bitcoin and Bitcoin Cash in his portfolio commented that he had a claim of 0.125 in each of Bitcoin and Bitcoin Cash. 

However, the creditor received 30,283 yen in his PayPal account and wondered if the rest of the amount would be credited at a later time.

Kamikaz Fiat, one of the most notable names on Crypto Twitter, claimed that some Mt Gox creditors got paid twice today. He added:

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“These are the first cash payments in 10 years and on day one the trustee has f*cked up and made incorrect payments.”

Several Mt. Gox creditors on the Reddit subchannel r/mtgoxinsolvency also confirmed receiving double payments.

The reports also elucidated that the repayments through bank accounts have not yet happened. Creditors who don’t own a PayPal account and have updated their bank account details with the bankruptcy trusty remain in a dilemma about their repayment.

In late November, Mt. Gox creditors received an email from the bankruptcy trustee, who announced their intention to initiate payments. 

However, due to the different types of payments and other processing times, payments will continue into 2024. As part of this process, Mt. Gox will distribute various assets among creditors.

In September, the court allowed Mt. Gox extended the deadline for repayment of payments to hacking victims until Oct. 31, 2024. 

It was previously announced that creditors’ losses would be reimbursed by the end of October. However, Kobayashi said the trustee could not complete the payments by the agreed date.

Mt. Gox creditors have been waiting for repayment for almost a decade, and the payment deadline has been postponed several times. 

In the future, debt repayment may affect the Bitcoin price as creditors begin to sell or exchange the received crypto assets.

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