Historic Moment Former Bitcoin Exchange Giant Mt. Gox Set to Launch Repayment Plan for Creditors

Landmark Event Defunct Bitcoin Exchange Giant Mt. Gox Prepares to Initiate Repayment Plan for Debtors

Translation: Blockchain Knight

After nearly a decade of bankruptcy, the former BTC exchange giant Mt.Gox is about to launch a repayment plan to its creditors. In a recent email, the bankruptcy trustee of the exchange, Nobuaki Kobayashi, conveyed the plan to start cash repayments in 2023.

This major move signifies a crucial stage in addressing the financial consequences of one of the most significant collapses in the crypto world.

According to the announcement, due to the large number of creditors and the diverse nature of their claims, the repayment process is highly complex. Although the first round of compensation is set to begin this year, the entire repayment process is expected to continue until 2024.

• Layer2 Ecological Dilemma Can Blast Break the Stalemate in the Industry?
• The Evolution of Binance From Founder to Professional Manager Era, Compliance is More Important Than Innovation
• Kraken Co-Founder Binance’s Historic Settlement Makes Cryptocurrency Fairer

On the other hand, according to the trustee, the individual creditors who participated in the Mt.Gox rehabilitation process have not yet received a specific repayment date. Therefore, it is “impracticable” for the trustee to notify each creditor when they will receive their repayment. Without a more specific and ongoing repayment procedure, creditors cannot accurately know when they will receive their funds.

Some creditors have received emails from the trustee, stating that the trustee plans to start repaying creditors soon and aims to start cash repayments in 2023, which will continue into 2024.

The trustee’s recent notification also indicates that meticulous preparations are underway, with JPY 7 billion in trust assets already redeemed to fund these upcoming repayments.

It is worth noting that Mt.Gox was founded in Tokyo in 2010 and quickly became a dominant player in global BTC trading, accounting for 70% of global BTC transactions by 2013.

However, the rapid rise of the platform came to a sudden halt in 2014 due to a hacker attack, resulting in a disastrous loss of over 800,000 BTC. This led to withdrawals being halted, trading suspended, and ultimately, the exchange declaring bankruptcy.

The upcoming distribution is a critical step in the rehabilitation process and includes BTC worth $5.1 billion and BCH worth $31.5 million. Creditors eagerly awaiting compensation are advised to stay informed through the claims application system for the latest updates.

The initial repayments will focus on smaller claims, with the first JPY 200,000 per creditor being paid in Japanese yen. In contrast, larger claims that opt for a mixed repayment will be proportionally allocated, with approximately 71% paid in crypto assets and 29% in cash.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!