Key takeaways:
- Mt. Gox cryptocurrency exchange, creditors are finally receiving payments for their claims after a decade of insolvency.
- Mt. Gox creditors have received double payments, prompting inquiries into whether the rehabilitation trustee will address and resolve the issue.
Recent speculation on the mtgoxinsolvency Reddit page suggests that users who were affected by the infamous Mt. Gox hack in 2014 may finally be receiving Japanese yen-denominated repayments through PayPal.
While these reports remain unconfirmed, several Reddit users claim to have received payments, sharing screenshots of PayPal receipts and expressing surprise at the unexpected windfall.
Among the Reddit users sharing their experiences, Free-end254 posted, “I just got paid,” attaching a screenshot of the PayPal receipt. Another user, rpostwvu, affirmed, “I just got my initial payment via Paypal!! I was sure it was a phishing attempt on my email, but nope legit money in JPY.”
Similar messages flooded the social media platform, creating a buzz around the potential repayments.
A member of the Telegram group “MtGoxCreditors” confirmed to The Block that they received a Japanese yen-denominated payment on December 25 from the Mt. Gox trustee through PayPal.
This revelation comes almost ten years after the funds were initially locked on the exchange on February 24, 2014.
Launched in 2010, Mt. Gox was once the world’s largest cryptocurrency exchange until it fell victim to a massive hack in 2014. Despite recovering approximately 20% of the stolen funds, the exchange collapsed, leaving creditors in limbo for almost a decade.
Earlier this year, the repayment deadline was extended to October 2024.
Speculation arises about the potential impact of these repayments on Bitcoin prices, given the substantial volume of tokens being released. However, a UBS report earlier this year suggested that while the market might experience some movement, it would not destabilize significantly.
Last month, Nobuaki Kobayashi, the trustee overseeing Mt. Gox’s estate initiated communication with rehabilitation creditors regarding the commencement of repayments.
The trustee mentioned in an email that efforts were being made to begin cash repayments within the 2023 calendar year. However, repayments are expected to extend into 2024 due to the large number of rehabilitation creditors.
Mt. Gox creditors, who have patiently awaited repayment for almost a decade, are now faced with the prospect of receiving long-overdue funds.
As repayments commence, there is speculation on how creditors might interact with their received crypto assets, potentially impacting Bitcoin prices as assets are sold or exchanged.
The reported repayments mark a significant development in the Mt. Gox saga, offering a glimmer of hope for creditors after years of uncertainty. As the rehabilitation process continues, the cryptocurrency community will be closely monitoring any potential market shifts resulting from the release of these long-awaited funds.
