As part of its long-awaited plan to get back on its feet, Mt. Gox, which used to be the biggest cryptocurrency exchange, started paying those debtors.
The exchange went bankrupt in 2014 after a terrible security breach that caused the loss of about 650,000 BTC. It has now started paying back customers in Bitcoin and Bitcoin Cash through approved centralized crypto exchanges.
As part of the process, creditors must meet certain requirements, such as proving that their accounts are real and agreeing to the terms set by third-party organizations that handle the receipt of funds. The Rehabilitation Trustee, Nobuaki Kobayashi, is currently in talks with certain coin exchanges to make sure that the repayments go smoothly.
Mt. Gox Repayments Delivered via Bitbank Amid Crypto Surge
Reports from people who received money on sites like Reddit show that the money was sent through exchanges like Bitbank. “The BTC/BCC coins are already under my control,” one user said after the move went through successfully.
Mt. Gox told the user in an email that the credit would be sent to their chosen exchange, as per the Rehabilitation Plan, and would take effect once the blockchain confirmed it. But it looks like the only people who are getting their money back right now are the ones who chose cryptocurrency returns when they filed their claims. Japanese exchanges BitBank and SBI are confirmed receivers.
The payments started after a court approved a settlement plan in 2021, which was agreed upon by most of the affected users. In December 2023, after years of waiting, Mt. Gox finally started sending payments to customers. This was a significant step in the lengthy court case.
The recent payments occur at the same time that Bitcoin’s price has been fluctuating on the market as a whole. It recently fell below $55,000 for the first time since February. It has been found that Mt. Gox’s movement of over 47,000 Bitcoins as part of these repayments affects how the Bitcoin market works.
