Mt. Gox, the defunct cryptocurrency exchange, has initiated the process of reimbursing its creditors with Bitcoin and Bitcoin Cash. The disbursements are being conducted through selected cryptocurrency exchanges, in line with the exchange’s approved rehabilitation scheme.
A recent update from the MtGoxBalanceBot on platform X revealed that the collective Bitcoin (BTC) holdings across all recognized Mt. Gox Trustee wallets amount to 94,457 BTC. Since the last update, there has been a movement of 47,288 BTC from these wallets.
A document confirms the commencement of Bitcoin and Bitcoin Cash repayments to creditors by Mt. Gox on July 5, 2024. Source: Mt. Gox
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Repayment Terms
The completion of several prerequisites will precede the swift repayment to the remaining rehabilitation creditors. These prerequisites encompass the verification of account authenticity and the creditors’ agreement to the terms of the Agency Receipt Agreement as proposed by the designated cryptocurrency exchanges. Furthermore, to ensure the secure and efficient execution of repayments, the Rehabilitation Trustee is in ongoing discussions with the exchanges to finalize the repayment procedures.
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The History of Mt. Gox
Established in 2010 by Jed McCaleb, Mt. Gox rose to prominence as one of the most significant BTC exchanges globally, managing 70% of all Bitcoin transactions at its height. In 2011, McCaleb handed over the reins to Mark Karpelès. However, in 2014, the exchange halted all Bitcoin withdrawals, attributing the suspension to technical difficulties. It later came to light that around 850,000 BTC had vanished due to a persistent security flaw.
Mt. Gox declared bankruptcy in February 2014, with its debts vastly surpassing its assets. The legal proceedings transitioned to civil rehabilitation in 2018, and in 2019, Karpelès was found guilty of tampering with financial records.
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Acknowledgment of Repayments
Multiple Reddit posts and user accounts confirm that repayments in BTC and Bitcoin Cash (BCH) have commenced and are being credited to various exchanges.
A Reddit user shares an email from Mt. Gox regarding the repayment of BTC/BCH. Source: Reddit
The Reddit post outlines the contents of the email sent by Mt. Gox, identifying “MtGox Co., Ltd.” as the Rehabilitation Debtor and Nobuaki Kobayashi, Attorney-at-law, as the Rehabilitation Trustee.
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