After nearly a decade of waiting, creditors of the defunct cryptocurrency exchange Mt. Gox are set to finally receive cash repayments in 2023. The Tokyo-based exchange, which handled over 70% of all Bitcoin transactions at its peak, was forced to file for bankruptcy in 2014 following a major hacking incident.
The rehabilitation trustee, Nobuaki Kobayashi, has announced that the repayment process for creditors is scheduled to be completed by 2023. The repayments will be made in a mix of cryptocurrencies and fiat money, with approximately 71% in crypto and 29% in cash after an initial yen payment.
The repayment window for Mt. Gox creditors has finally opened, with some creditors who have provided the necessary details to the Mt. Gox trustee potentially receiving repayments as early as the end of 2023. However, the exact timing for each creditor remains undetermined, and the schedule is still subject to change.
Mt. Gox Exchange Will Distribute Over $5 Billion Worth of Assets to Its Creditors
In the upcoming weeks and months, creditors are set to receive a distribution of assets that includes 142,000 Bitcoin (BTC), 143,000 Bitcoin Cash (BCH), and ¥69 billion. At the time of reporting, the total value of these assets exceeds $5.67 billion. This information was shared in a post by cryptocurrency journalist Colin Wu.
Some MtGox creditors received email from the bankruptcy trustee stating that the trustee plans to start repaying creditors soon and is working to start repaying them in cash in 2023 and will continue into 2024. Mt Gox will distribute 142,000 BTC, 143,000 BCH, and 69 billion yen,… pic.twitter.com/gWW29Zycl1
— Wu Blockchain (@WuBlockchain) November 22, 2023
The anticipation for repayments from MtGox has been building for several years. Established in 2010, the exchange suffered a significant loss of approximately 850,000 BTC, valued at $500 million, due to an unidentified hacker attack in 2014.
This substantial loss led to the closure of the exchange, impacting around 24,000 users. The stolen cryptocurrency’s total value, calculated based on the current price, is estimated at around $31 billion.
This development marks a significant milestone in the long and complicated history of the Mt. Gox saga. As creditors eagerly await the return of their lost funds, the ongoing repayment process serves as a reminder of the importance of transparency, security, and regulatory compliance within the cryptocurrency industry.