MtGox trustee prepares to repay users as part of the approved Rehabilitation Plan.
Wallet addresses of MtGox moved Bitcoin worth $9B to anonymous wallets.
After hackers stole 850K BTC from MtGox in 2014, the exchange closed its website and filed for bankruptcy.
In a recent announcement, the Rehabilitation Trustee of the defunct MtGox crypto exchange outlined preparations to repay users as part of the approved Rehabilitation Plan. According to the notification, claimants will soon receive compensation for their cryptocurrency rehabilitation claims.
They can choose between direct repayment in BTC and Bitcoin Cash (BCH) through designated crypto exchanges or an equivalent cash amount from the sale of these assets. This effort is part of the recovery process for customers who lost funds when the Tokyo-based exchange filed for bankruptcy a decade ago.
Specifically, in February 2014, MtGox suspended trading, closed its website, and sought bankruptcy protection. It was later revealed that approximately 850,000 Bitcoins, worth about $450 million at the time, were stolen over several years due to security vulnerabilities.
MtGox, which once handled 70% of Bitcoin transactions before its 2014 security breach, was entangled in a lengthy reimbursement process for lost investor funds. The exchange has faced numerous legal challenges, management issues, and multiple deadline extensions for creditor repayments.
Ultimately, the repayment process is now underway, as indicated in the new notice. The announcement comes in response to numerous inquiries and concerns from rehabilitation creditors regarding the status of their BTC holdings.
Over the past 24 hours, wallet addresses associated with MtGox have been observed moving BTC en masse to anonymous wallets. Data shows that MtGox has transferred Bitcoin worth over $9 billion within the last few hours, causing Bitcoin’s price to decline.
Meanwhile, the Trustee clarified that no repayments have been made yet, either through exchanges or by selling the cryptocurrencies. However, the Trustee reassured creditors that both BTC and BCH remain securely managed.
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