In a significant development, creditors of Mt. Gox, the Bitcoin exchange that faced a devastating 2014 hack resulting in the loss of 850,000 BTC, are poised to receive cash repayments in the near future. The trustee overseeing Mt. Gox estate, Nobuaki Kobayashi, initiated the communication with rehabilitation creditors via email in November.
Repayment plans unveiled
The email from Kobayashi outlines the trustee’s plans to kickstart the first round of cash repayments to creditors in 2023. The repayment process is expected to extend into 2024 due to the intricate nature of the proceedings. The diverse range of rehabilitation creditors, varying types of repayments, and distinct preparation and processing times contribute to the extended timeline.
Kobayashi emphasized the complexity of the repayment process, stating, “Due to the large number of rehabilitation creditors, the varying types of repayments, and the different preparation and processing times required, repayments will continue into 2024.”
In an official statement, the Mt. Gox rehabilitation trustee disclosed the redemption of 7 billion Japanese yen, equivalent to $47 million, to fund the repayment of claims. Following this redemption, the total trust assets were reported to be approximately 8.8 billion JPY, or around $59 million. This financial move indicates a tangible step towards the long-awaited reimbursement for affected creditors.
Background on Mt. Gox
Launched in 2010, Mt. Gox quickly ascended to become the world’s largest Bitcoin exchange by 2013, facilitating 70% of global Bitcoin transactions. However, the platform’s prominence was short-lived, as in early 2014, it ceased all withdrawals and halted trading. Subsequently, the website was taken down, and the company declared bankruptcy after losing over 800,000 bitcoins.
In a previous development in September, Mt. Gox extended the deadline for rehabilitation creditor repayments from October 31, 2023, to October 31, 2024. This extension allowed for additional time to navigate the intricacies of the repayment process, ensuring a more systematic and fair distribution of funds to the diverse group of creditors.
The trustee provided creditors with the means to track the status of their repayments through the claim filing system. This transparency in the process aims to keep creditors informed about the progress of their claims, given the large number of stakeholders involved.
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