Crypto News- July Start Date for Bitcoin and Bitcoin Cash Repayments by Mt. Gox Trustee
Crypto News– In 2024, Mt. Gox, the cryptocurrency exchange that lost 850,000 Bitcoin in investor funds, will begin reimbursing its former users. The rehabilitation trustee of Mt. Gox plans to initiate repayments in Bitcoin (BTC) and Bitcoin Cash (BCH) starting July 2024, as stated in an official communication released by the exchange on June 24th.
Approximately 127,000 creditors of Mt. Gox are owed more than $9.4 billion worth of Bitcoin. These creditors have been waiting for over 10 years to recover their funds after the exchange collapsed in 2014 due to multiple undetected hacks.
The $9.6 billion Bitcoin transfer by Mt. Gox in May was already included in the ongoing repayment efforts
Mt. Gox’s repayment plans have been among the most closely watched developments in the industry, as users have been awaiting reimbursement for their lost BTC for over a decade. On May 28, Mt. Gox transferred 141,686 BTC valued at $9.62 billion to a new wallet, 1Jbez, consolidating funds from several other cold wallets linked to Mt. Gox. This marks the first on-chain movement of funds from the defunct exchange in more than five years.
Following the reports, Mt. Gox rehabilitation trustee Nobuaki Kobayashi confirmed that the consolidation is part of the exchange’s strategy to commence repaying creditors, although he did not specify a timeline for when these repayments will begin. In a statement on May 28th, Kobayashi mentioned:
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.
The collapse of Mt. Gox in 2014, which led to a significant drop in the price of BTC to below $500
Mt. Gox was one of the earliest cryptocurrency exchanges, dominating over 70% of all trades within the blockchain ecosystem at its peak.
In 2014, Mt. Gox ceased operations following a security breach that resulted in the loss of more than 850,000 BTC, valued then at over $51.9 billion. Currently, Bitcoin is priced above $61,100.
Following the exchange’s shutdown, Bitcoin plummeted to a low of $420 in February 2014. Mt. Gox reportedly suffered six hacks between 2011 and 2014.
Despite announcements from Mt. Gox’s rehabilitation trustee regarding repayments, meeting the current deadline could face further delays. Initially set for September 2023, repayments were originally scheduled before October 31, 2023.
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