Key takeaways:
- Mt. Gox, is reportedly on the verge of initiating repayments to creditors
- Emails confirm identity verification for accounts designated for Bitcoin and Bitcoin Cash repayments.
The beleaguered cryptocurrency exchange Mt. Gox, infamous for the significant hack in 2014 that led to the loss of 850,000 BTC, might soon commence repayments in Bitcoin to certain creditors, according to information circulating on Reddit.
Although Mt. Gox recently extended the repayment deadline to October 2024, some creditors who have completed the necessary identity verification process could start receiving Bitcoin repayments in the next couple of months.
Numerous Mt. Gox creditors have reported receiving emails regarding the completion of identity verification for their crypto exchange accounts, earmarked for repaying Bitcoin and Bitcoin Cash.
The exchange, once the world’s largest in 2010, managed around 70% of all BTC transactions before the 2014 hack.
Despite recovering approximately 20% of the stolen funds, Mt. Gox faced significant challenges.
In December, certain customers reported receiving payouts in yen to their Paypal accounts, signaling potential progress in the restitution process. The looming Bitcoin repayments could have repercussions on BTC prices, especially considering the substantial volume of coins set to be released. This impact might coincide with the acceleration of inflows to exchange-traded funds (ETFs) and the upcoming Bitcoin halving scheduled for April.
The rehabilitation trustee of Mt. Gox has sent emails to several creditors, confirming the existence of their accounts and expressing anticipation of Bitcoin and Bitcoin Cash repayments.
Copies of these emails have been shared on Reddit, with indications that users on platforms like Bitstamp and Kraken have received the confirmation.
To be eligible for BTC/BCH repayments, creditors must ensure their accounts are in an active status. The email from Mt. Gox’s trustee also warned that disabled or frozen accounts might not be eligible for future repayments.
Confirmation emails have been reported by Mt. Gox creditors, primarily from Bitstamp, with a few from Kraken users.
The first repayments to Mt. Gox creditors began in December 2023, and the repayment deadline was later extended to October 2024. As of that time, the Mt. Gox estate held 142,000 bitcoin, 143,000 bitcoin cash, and 69 billion Japanese yen.
