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Mt. Gox Starts Releasing Creditors $9 Billion Worth of Bitcoin Claims – Crypto News

Published

1 year ago

April 23, 2024

Dripp

One of the oldest Bitcoin exchanges Mt. Gox has officially started the process of returning the creditors from its $9 billion Bitcoin hoard. On Monday, April 22, some creditors of Mt. Gox stated that they had started receiving updates on their claims.

Mt. Gox Creditors Receive Updates Over their Bitcoin Holdings

The updates received by Mt. Gox creditors include information such as the number of Bitcoins to be returned as well as the repayment dates. Brian Dixon, chief executive at Off the Chain Capital, which purchased Mt. Gox claims, said:

“This is the first time we’ve seen an update such as this on repayment status, which is a good sign and a step in the right direction”.

Although he received the information regarding the repayment date, he refused to disclose it. Adam Back, CEO of blockchain infrastructure provider Blockstream, mentioned that he has received notifications regarding the tokens slated for return but is currently awaiting confirmation of specific dates.

Once the largest Bitcoin exchange globally, Mt. Gox, headquartered in Tokyo, suffered a hack in 2011 and subsequently declared bankruptcy in 2014. In the previous year, US prosecutors accused two Russian individuals of collaborating with others to infiltrate the exchange’s servers.

According to data from Arkham Intelligence, the defunct platform still possesses approximately 137,892 Bitcoin valued at $9.2 billion. Previous records indicate that Mt. Gox also held Bitcoin Cash and fiat currency, with some portions of the fiat money already returned.

Creditors To Receive Payments By October 31

As the winding-up process progresses, Mt. Gox trustee stated that the creditors should see base intermediary and lumpsum payment by the 31st of October this year. Significantly, it has been numerous years since the Mt. Gox breach occurred. Users impacted by the incident have been awaiting reimbursement since 2014 when the platform fell victim to the attack.

One question that’s been on everyone’s mind for a long while is whether these creditors will sell their Bitcoins upon receiving them. This might introduce some selling pressure on BTC, however, the likelihood of all creditors selling their BTC at the same time remains slim.