After staying non-operational for ten years, defunct crypto exchange Mt. Gox is finally repaying its creditors, some of whom have confirmed it on social media.
Mt. Gox Starts Repayments
After a decade of anticipation, creditors of the infamous Mt. Gox cryptocurrency exchange are now experiencing the first stages of compensation. Social media is abuzz with users confirming the receipt of payments for their long-blocked Bitcoin deposits in fiat currencies.
The first tangible evidence of repayment emerged on December 21, when a user on the social media platform X revealed that they had received Mt. Gox claims via a bank transfer, credited in Japanese Yen. Subsequent posts on the Reddit page r/mtgoxinsolvency on December 26 indicated that Mt. Gox was utilizing PayPal for Japanese Yen-denominated repayments, a full decade after the funds were initially locked on the exchange in 2014.
Repayment Process Initiated by Trustee
Nobuaki Kobayashi, the trustee overseeing the estate of the collapsed exchange, communicated the commencement of repayments through emails sent to rehabilitation creditors last month.
The trustee acknowledged the complexity of the process, stating,
“Due to the large number of rehabilitation creditors, the varying types of repayments, the different preparation and processing times required to make the repayment, repayments will continue into 2024.”
In a move that garnered attention earlier, the Mt. Gox Trustee extended the repayment deadline from October 31, 2023, to the same date in 2024. However, the trustee hinted that some early repayments could be made for rehabilitation creditors who had already provided the necessary information, potentially happening “as early as the end of this year.”
Tranches of Repayments
Creditors are anticipating repayments in several tranches, including the base repayment, early lump-sum repayment, and intermediate repayment. For instance, one user mentioned receiving only part of their 0.125 Bitcoin claim, amounting to 30,283 yen (approximately $200 at the current exchange rate), leaving a significant outstanding balance of $748.
Mt. Gox has introduced a system assigning “voting rights” to each claim, helping standardize amounts between fiat and crypto creditors in yen. This approach ensures fairness by multiplying the price of creditors’ Bitcoin holdings by a later spot price, ensuring equitable compensation for assets stuck on the exchange since 2014.
As the repayments start gaining steam, the cryptocurrency community watches with bated breath, hoping that Mt. Gox creditors will finally find closure after a decade-long wait.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2023/12/mt-gox-creditors-finally-see-light-at-end-of-decade-long-tunnel