According to Cointelegraph: Mt. Gox, the infamous collapsed cryptocurrency exchange, has started repaying its creditors in Bitcoin (BTC) and Bitcoin Cash (BCH). This move marks a significant milestone in the exchange's long-awaited rehabilitation plan, initiated to compensate creditors who suffered losses when the exchange went bankrupt in 2014.

Mt. Gox Initiates Repayments in Bitcoin and Bitcoin Cash to Creditors

Details of the Repayment Process

Repayments are being facilitated through designated crypto exchanges. According to an X post by the MtGoxBalanceBot account, the total Bitcoin balance on all known addresses of the Mt. Gox Trustee is 94,457 BTC, with 47,288 BTC already transferred from these addresses for repayment purposes.

Conditions for Repayments

The remaining repayments to rehabilitation creditors will be made promptly after fulfilling several conditions. These include:

  • Account Validity: Confirming the validity of creditor accounts.

  • Acceptance of Agreements: Creditors must accept the intent to subscribe to the Agency Receipt Agreement via designated crypto exchanges.

  • Safety and Security: Ensuring repayments are conducted safely and securely.

  • Procedure Discussions: Completion of discussions regarding repayment procedures between the Rehabilitation Trustee and the exchanges.

Reddit user posting email received from Mt. Gox regarding repayment of BTC/BCH. Source: Reddit

Historical Context: The Rise and Fall of Mt. Gox

Founded in 2010 by Jed McCaleb and later sold to Mark Karpelès, Mt. Gox once handled 70% of global BTC transactions. However, in early 2014, the exchange suspended all BTC withdrawals, citing technical issues. It was later revealed that approximately 850,000 BTC had been lost due to a long-standing security breach. Following its bankruptcy filing in February 2014, the case shifted to civil rehabilitation in 2018. Mark Karpelès was convicted of falsifying financial records in 2019.

Current Repayment Status

According to several Reddit posts and user reports, repayments in BTC and BCH have already been credited to some exchanges. A Reddit post details an email received by creditors, stating, “On July 5, 2024, the Rehabilitation Trustee made a blockchain transfer of the BTC/BCH amount repayable to you as the Base Repayment and the Early Lump-Sum Repayment or the Intermediate Repayment.”

The email also confirmed that MtGox Co., Ltd. is the Rehabilitation Debtor, and Nobuaki Kobayashi, Attorney-at-law, is the Rehabilitation Trustee overseeing the repayment process.

The initiation of repayments in Bitcoin and Bitcoin Cash by Mt. Gox signifies a crucial step towards resolving one of the most significant crypto exchange collapses in history. This process aims to provide long-awaited compensation to creditors, marking the beginning of the end for the Mt. Gox saga.