Defunct cryptocurrency exchange Mt. Gox has started payments to rehabilitation creditors as part of its rehabilitation plan.
More than 10 years after its collapse, Mt Gox creditors are finally getting paid back.
According to a July 5 announcement, payments are being made in Bitcoin and Bitcoin cash via centralized crypto exchanges designated to handle the transactions.
However, rehabilitation creditors need to satisfy some prerequisites before receiving the payments. These include confirming the validity of their accounts and agreeing to the terms of the agreement from intermediary agencies handling the receipt of the funds.
Additionally, the Rehabilitation Trustee and designated cryptocurrency exchanges need to finish their discussions about how to handle the repayments. This ensures that both parties are aligned on the repayment process.
Several recipients have also confirmed the development on Reddit. One user confirmed receiving the exact amount that they were expecting to receive on the crypto exchange Bitbank.
“The BTC/BCC coins are already under my control,” the user wrote.
Another user shared an email received from Mt. Gox stating that their exchange had been credited via a Japan-based creditor. Mt. Gox Co., Ltd. was labeled as the Rehabilitation Debtor, and Nobuaki Kobayashi, Attorney-at-law, as the Rehabilitation Trustee.
“This transfer was made to [your exchange], which you designated as your Designated Cryptocurrency Exchange etc., on the MTGOX Online Rehabilitation Claim Filing System […] In accordance with the Rehabilitation Plan, the repayment took effect at the time the transfer was recorded on the blockchain.” the email stated.
According to some responses to the user’s post, only those who selected cryptocurrencies as a means of repayment at the time of filing their claims are receiving the repayments.
At the time of writing, only BitBank and SBI, both Japanese cryptocurrency exchanges, had been confirmed by users as having received the repayments.
Mt. Gox was one of the largest cryptocurrency exchanges before filing for bankruptcy in 2014. The reason was a 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.
MtGox customers have finally started receiving Bitcoins! After over 10 years I wasn't sure anymore if it'd finally happen, but here we are finally!! This has been a long journey and I'm happy to see we're finally getting there, only a bit more…
— Mark Karpelès (@MagicalTux) July 5, 2024
A compensation plan was approved by a court in 2021. The plan was supported by the majority of affected users.
This led to years of waiting before the exchange finally started paying out customers in December 2023.
The recent cryptocurrency repayments come as Bitcoin has dropped below the $55,000 mark for the first time since February. With Mt. Gox moving over 47,000 Bitcoin, the transfers have been flagged as one of the key reasons behind dwindling price pressure on the original cryptocurrency.