Bitstamp Begins Repaying Mt Gox Creditors After Receiving Funds from Trustee

Bitstamp Begins Repaying Mt Gox Creditors After Receiving Funds from Trustee

Cryptocurrency exchange Bitstamp has initiated repayments to Mt. Gox creditors after securing the full amount of funds owed from the trustee. This includes Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH). Repayments commenced on July 25, and recipients are expected to gain full control over their assets within a week, following the completion of necessary security checks, as stated in an announcement shared with Cointelegraph.

Jean-Baptiste Graftieaux, the global CEO of Bitstamp, remarked on the significance of this event: “We’re proud to play our part in making the Mt Gox investors whole. It’s a testament to Bitcoin’s value as an asset that, although the Mt Gox investors should never have been unable to access their tokens, many will make a serious profit.”

Since the Mt. Gox incident, Bitcoin’s value has appreciated significantly, underscoring its worth as an asset. Over $9.4 billion in Bitcoin is owed to approximately 127,000 Mt. Gox creditors, who have waited over a decade to recover their funds. This has raised concerns about potential sell pressure on Bitcoin from these creditors.

This development follows the recent execution of the first test transactions on the Bitstamp exchange by Mt. Gox. However, Bitstamp’s UK customers will face a longer wait. According to the announcement, UK users will not be included in the initial distribution but can expect to receive their assets within a few months. Bitstamp assured that UK customers will receive further information in due course.

Other exchanges are also progressing with repayments. Notably, Kraken completed its repayments to Mt. Gox creditors on July 24, as confirmed by Kraken’s CEO, Dave Ripley.

This marks a significant milestone for the Mt Gox creditors, offering a sense of resolution after years of uncertainty.