After almost a decade of uncertainty, former creditors of the defunct Bitcoin exchange, Mt. Gox, are finally seeing signs of reimbursement. According to recent reports on social media and the Reddit community, some creditors claim to have received payments in Japanese yen through PayPal. The news follows the announcement made by Mt. Gox trustee Nobuaki Kobayashi, who in November of last year informed creditors about the commencement of cash reimbursements.
Users on the Reddit page r/mtgoxinsolvency shared their experiences, displaying screenshots of emails and PayPal receipts confirming the received payments. After so many years of waiting and skepticism, the initial sense of disbelief was evident in some comments. One user admitted to initially thinking the email was a phishing attempt before confirming the legitimacy of the payment in their PayPal account.
This reimbursement process occurs in multiple stages, including the base reimbursement, a one-time early reimbursement, and an intermediate reimbursement. Some users reported receiving only a fraction of their claims, indicating that payments are being distributed gradually. This significant development comes in one of the largest cryptocurrency exchange collapses, leaving creditors with approximately 950,000 Bitcoins lost in the Mt. Gox collapse in February 2014.
The Figures Behind the Mt. Gox Collapse: Bitcoins Lost Today Equivalent to Over $40 Billion
The Mt. Gox story involves the massive loss of Bitcoins and years of legal battles. The catastrophe in 2014 led to the disappearance of around 950,000 Bitcoins, valued at approximately $450 million at that time. Security issues and potential internal involvement in the loss of funds created uncertainty, leaving creditors with their assets trapped for almost a decade.
Nobuaki Kobayashi, as the trustee, has been handling the reimbursement process and sent emails last November announcing the initiation of cash payments. Although not officially confirmed by Mt. Gox, the shared experiences of users indicate that the process is underway.
The extended reimbursement period, expected to continue until 2024, could have implications for the Bitcoin market. As creditors regain access to their assets, some may choose to sell or trade their cryptocurrencies, potentially affecting supply and demand in the market
