More than 10 years since the collapse of Mt. Gox, users confirm reimbursements

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As a researcher with personal experience in the cryptocurrency industry, I find it both intriguing and relieving to see Mt. Gox finally making payments to its rehabilitation creditors after more than a decade of waiting. I remember the shock and disappointment when the exchange filed for bankruptcy following the catastrophic security attack that led to the loss of around 650,000 BTC belonging to customers and about 100,000 of the exchange’s own.

As a researcher studying the developments in the cryptocurrency industry, I can share that defunct exchange Mt. Gox has initiated the disbursement of payments to its rehabilitation creditors as outlined in their rehabilitation plan.

More than 10 years after its collapse, Mt Gox creditors are finally getting paid back.

Based on a July 5th declaration, transactions in Bitcoin and Bitcoin Cash are being processed through designated centralized crypto exchanges for handling the payments.

As a crypto investor, I’ve come across situations where I’m deemed a “rehabilitation creditor,” entitled to receive payments following a recovery or reorganization plan for a cryptocurrency project. Yet, before I can collect my due, certain conditions must be met. Firstly, I need to verify the legitimacy of my account, ensuring it complies with all relevant regulations and guidelines. Second, I am required to acknowledge and accept the terms set forth by the intermediary agencies responsible for distributing the funds. These steps help safeguard the integrity and fairness of the entire process.

The Rehabilitation Trustee and chosen cryptocurrency exchanges must finalize their talks concerning the repayment procedure. This alignment will ensure understanding between the two parties.

Multiple Reddit users have reportedly verified the recent progress, with one individual confirming receipt of the anticipated amount through cryptocurrency platform Bitbank.

“The BTC/BCC coins are already under my control,” the user wrote.

A user recently disclosed an email they received from Mt. Gox, notifying them that their account had been refunded through a creditor based in Japan. The entity responsible for this exchange, Mt. Gox Co., Ltd., was identified as the Debtor in Rehabilitation, while Nobuaki Kobayashi, an attorney-at-law, was designated as the Trustee overseeing the rehabilitation process.

“I processed a transfer of funds to the cryptocurrency exchange you specified, which is [your exchange], through the MTGOX Online Rehabilitation Claim Filing System. In accordance with the rehabilitation plan, this payment was implemented upon recording of the transaction on the blockchain.”

Based on certain user feedback, individuals who chose cryptocurrencies as their preferred method for reimbursement during their claim submission are currently being processed and paid out in that currency.

As I pen down this text, it has been verified by users that only BitBank and SBI, two Japanese digital currency trading platforms, have reportedly received the reimbursements.

Mt. Gox, once a leading cryptocurrency exchange, declared bankruptcy in 2014 following a devastating cyberattack. The incident resulted in the theft of approximately 650,000 Bitcoins from customers’ accounts and an additional 100,000 Bitcoins belonging to the exchange itself.

After a decade-long wait, MtGox creditors are now receiving their Bitcoins. I once doubted if this day would ever come, but it seems we’ve reached that milestone at last. This journey has been long and arduous, but I’m elated to see progress being made. Just a bit further…

— Mark Karpelès (@MagicalTux) July 5, 2024

In 2021, a court gave its approval to a payment scheme. This arrangement gained widespread acceptance among the large number of individuals it impacted.

I analyzed the situation and found that it resulted in a prolonged period of around three years, where no returns were made by the exchange until December 2023.

Lately, cryptocurrency transactions have emerged following Bitcoin’s dip below the $55,000 threshold for the first time since February. The significant transfer of approximately 47,000 Bitcoin from Mt. Gox is suspected to be a major contributor to the decreasing price pressure on Bitcoin.

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2024-07-05 12:54