According to a recent development, Mt. Bitcoin (BTC) exchange, which suffered a major attack in 2014 and is currently inactive. Nobuaki Kobayashi, the trustee overseeing Gox’s recovery, issued hopeful updates to creditors. The trustee began sending emails on November 21 indicating that repayments would begin in cash in 2023 and extend into 2024. Here are the details…
Mt. Gox will start paying creditors
According to reports on social media, a large number of stock market creditors and various types of repayments are contributing to the lengthening of the timeline. Trustee Kobayashi emphasized that repayments will continue until 2024 due to the complexity of the process. The announcement coincided with the redemption of 7 billion Japanese yen ($47 million) received by the rehabilitation trustee on November 22. This redemption, intended to finance the repayment of receivables, left the foundation’s assets at ¥8.8 billion, or approximately $59 million.
Some MtGox creditors received email from the bankruptcy trustee stating that the trustee plans to start repaying creditors soon and is working to start repaying them in cash in 2023 and will last until 2024. Mt Gox will distribute 142,000 BTC, 143,000 BCH, and 69 billion yen,… pic.twitter.com/jJW7v2qKws
— Wu Blockchain (@WuBlockchain) November 22, 2023
Originally planned to be completed by October 2023, the repayment deadline was officially moved to October 2024 in September 2023. Once the world’s largest Bitcoin exchange, Mt. Gox collapsed in 2014, losing 850,000 BTC to hackers, which resulted in trading being suspended and then filing for bankruptcy protection.
Bitcoin, BCH and more: What are the amounts payable?
The latest email from Kobayashi reassured creditors that efforts were being made to initiate cash repayments within the year. However, a significant number of Mt. Gox creditor, repayments are expected to extend into 2024. The specific timing for individual creditors remains unclear, Kobayashi said. He advises them to check the refund status in the claims filing system.
According to information obtained by crypto journalist Colin Wu, creditors are expected to receive 142,000 Bitcoin (BTC), 143,000 Bitcoin Cash (BCH), 69 billion Yen and other assets in the coming weeks and months. In particular, creditors with effective payment methods will be given priority for refunds.
Mt. Gox lost 850 thousand BTC
Mt. Gox refunds, concerns remain. The exchange, which lost nearly 850,000 BTC to hackers, has faced numerous delays in refund dates, the last of which has been extended to October 31, 2024. Experts expressed concerns about the potential impact of returned Bitcoins on the market, pointing to the risk of downward pressure and potential sell-off.
Similar concerns have been raised in the broader crypto space, including FTX’s plans to divest $100 million worth of cryptocurrency weekly and the US government’s sale of nearly 40,000 BTC seized from the Silk Road dark web marketplace. Mt. As Gox takes the first steps towards refunds, the crypto community is closely monitoring the potential impacts on market dynamics.
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