Creditors of the now-defunct cryptocurrency exchange Mt. Gox have reportedly started receiving fiat repayments for their previously trapped Bitcoin, as per posts on the Reddit page r/mtgoxinsolvency. These repayments, denominated in Japanese Yen, are said to be distributed through PayPal.
While these reports are yet to be officially confirmed, several Reddit users on the mentioned page have claimed to have received payments. The funds had been locked on the exchange since February 2014.
One Reddit user, Free-end254, even shared a screenshot of an email containing a PayPal receipt with the statement, “I just got paid.” Another user initially expressed skepticism, suspecting the email to be a phishing scam, but later confirmed the arrival of the payment in their PayPal account.
Mt. Gox Repayments Started in December 21
The first reported instance of these new Mt. Gox repayments occurred on December 21 when a pseudonymous Japanese user on the social media platform X (formerly Twitter) announced that they had received their Mt. Gox claims through a bank transfer credited in Japanese Yen.
This development comes approximately a month after Nobuaki Kobayashi, the trustee overseeing the estate of the Mt. Gox Bitcoin exchange, initiated the communication of repayment plans to rehabilitation creditors on November 21.
In his email, Kobayashi informed creditors that the initial cash repayments would commence in 2023, with the expectation of continuing the process into 2024. However, he did not provide specific timing details for individual rehabilitation creditors.
The initiation of the repayment process represents a notable milestone for Mt. Gox creditors who have endured an almost decade-long wait to recover their funds. The collapse of the exchange in 2014 led to the loss of around 850,000 Bitcoin, marking one of the largest hacks in the history of cryptocurrency.
While recent reports suggest progress in compensating affected users, the smoothness and duration of the repayment process remain uncertain. It remains to be seen how efficiently and expeditiously all creditors will be fully reimbursed.
The Infamous Hack of Mt. Gox
The collapse of Mt. Gox in 2014 following a hacking incident resulted in the loss of approximately 650,000 to 850,000 Bitcoins, which belonged to both the exchange and its creditors. The missing cryptocurrency was valued in the hundreds of millions, prompting Mt. Gox to file for bankruptcy protection in Japan.
Over the years, creditors have anticipated compensation through a protracted legal battle. Mt. Gox was able to recover only around 200,000 of the lost Bitcoins.
With the rehabilitation plan now in place, creditors can potentially receive some repayment, although the exact details remain uncertain. While they have been informed that full reimbursements will not be provided, the trustee recently noted that “approximately 99%” of those awaiting funds have voted in favor of a deal that would see them repaid around 90% of their funds.
