Mt. Gox Trustee to Begin Bitcoin and Bitcoin Cash Repayments in July
Mitchell Nixon
Mt. Gox, the cryptocurrency exchange that experienced a loss of 850,000 Bitcoin in 2014, is set to begin reimbursing its former users.
Mt. Gox, one of the pioneering cryptocurrency exchanges, once handled over 70% of all trades within the blockchain ecosystem.
In 2014, Mt. Gox ceased operations following a security breach that led to the loss of more than 850,000 BTC in user funds, valued at over $51.9 billion.
Starting in July 2024, the rehabilitation trustee of Mt. Gox will commence repayments in Bitcoin (BTC) and Bitcoin Cash (BCH), as stated in a notice released by the exchange on June 24.
“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 trustee has reiterated the request for user patience, noting that the sequence of payments will be determined by each respective cryptocurrency exchange:
“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.”
Approximately 127,000 creditors are owed over $9.4 billion in Bitcoin from Mt. Gox. These creditors have been awaiting the return of their funds for more than a decade, following the exchange’s collapse in 2014 due to a series of undetected hacks.
The repayment plans of Mt. Gox have been among the most closely watched events in the cryptocurrency industry, with users anticipating reimbursement for their lost BTC for over a decade.
Following recent reports, Nobuaki Kobayashi, the Mt. Gox rehabilitation trustee, confirmed that the consolidation efforts are a part of the exchange’s strategy to begin repaying creditors. However, he did not specify when these repayments would commence. In a statement made on May 28, Kobayashi said:
“The Rehabilitation trustee is preparing to make repayment for the portion of cryptocurrency rehabilitation claims to which cryptocurrency is allocated… As the Rehabilitation trustee is proceeding with the preparation for the above repayments, please wait for a while until the repayments are made.”
Despite the announcement from Mt. Gox’s rehabilitation trustee, the repayment deadline may experience additional delays. The current deadline was established in September 2023, which was one month before Mt. Gox was initially set to begin repaying creditors by October 31, 2023.