The Trustee requested that users be patient once more, mentioning that the timing of payments will depend on each crypto exchange’s process.
Making headlines today, the trustee of Mt. Gox, the now-infamous Bitcoin exchange that collapsed in 2014, has announced plans to initiate repayments to creditors starting in July.
On February 24, 2014, Mt. Gox ceased operation and declared bankruptcy because it revealed it had lost roughly 850,000 bitcoins, valued at approximately $450 at the time. On June 22, 2018, the exchange started a “civil rehabilitation” process. Its primary objective was to help creditors recover what they lost by giving them BTC directly, not the equivalent amount of money from 2014.
Mt. Gox Wants to Repay Users?
The exchange announced that creditors will begin receiving payments in July 2024. The trustee noted that the repayment will be made in bitcoin and Bitcoin Cash, which were recovered from Mt. Gox’s remaining assets. The recent development means that creditors could benefit more because the value of the digital asset has increased since then.
“The Rehabilitation Trustee will commence the repayments in Bitcoin and Bitcoin Cash in due course to the cryptocurrency exchanges with which the Rehabilitation Trustee has completed the exchange and confirmation of the required information for implementing the repayments,” the exchange said in the announcement.
The Trustee has requested users to be patient once more, mentioning that the timing of payments will depend on each crypto exchange’s process.
“We will commence the repayments in the order of the cryptocurrency exchanges with which the Rehabilitation Trustee will complete the exchange and confirmation of the required information. Please wait for a while until the repayments are made,” the trustee added.
Mt. Gox’s BTC Transfer
On May 28, Mt. Gox moved 141,686 Bitcoins, valued at $9.62 billion, into a new wallet. These bitcoins came from several other cold wallets linked to Mt. Gox. This is the first time in over five years that funds from the failed exchange have been moved to the blockchain.
After the reports, Mt. Gox’s trustee, Nobuaki Kobayashi, confirmed that moving the funds is part of their plan to begin paying back creditors. However, he did not specify when these repayments will commence. Kobayashi made this statement in an announcement on May 28.
The exchange noted that the trustee handling the rehabilitation process is getting ready to repay the portion of claims that involve crypto. It further requested that creditors be patient until the payment is complete.