Mt. Gox, the collapsed cryptocurrency exchange, has initiated repayments to its creditors in Bitcoin (BTC) and Bitcoin Cash (BCH). These repayments are part of the exchange’s rehabilitation plan and are being processed through designated crypto exchanges. Interestingly, the price of BTC plunged below $55,000 following the event.
Mt. Gox Begins Repayment
According to an X post by the MtGoxBalanceBot account, the total Bitcoin balance on all known addresses of the Mt. Gox Trustee stands at 94,457 BTC. Out of this, 47,288 BTC has already been moved from these addresses for repayment purposes.
The remaining rehabilitation creditors will receive their repayments promptly once several conditions are met. These conditions include confirming the validity of accounts and securing creditors’ acceptance of the intent to subscribe to the Agency Receipt Agreement via designated exchanges. Additionally, the Rehabilitation Trustee must ensure that repayments are made securely and discussions regarding the repayment procedures with the exchanges are finalized.
Fall of Mt. Gox
Founded in 2010 by Jed McCaleb, Mt. Gox was once the largest BTC exchange, handling 70% of global BTC transactions at its peak. McCaleb sold the exchange to Mark Karpelès in 2011. However, in early 2014, the exchange suspended all BTC withdrawals, initially citing technical issues but later revealing that approximately 850,000 BTC had been lost due to a long-standing security breach.
After filing for bankruptcy in February 2014, with liabilities far exceeding its assets, the case transitioned to civil rehabilitation in 2018. In 2019, Karpelès was convicted of falsifying financial records.
BTC and BCH Repayments
Recent activity on Reddit and other forums indicates that BTC and BCH repayments have begun, with exchanges crediting the returned funds to creditors’ accounts. A Reddit post detailed an email received from Mt. Gox, 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, sent by “MtGox Co., Ltd.,” lists Nobuaki Kobayashi, Attorney-at-law, as the Rehabilitation Trustee.
The post Mt. Gox Begins BTC and BCH Repayments: Details appeared first on Latest News and Insights on Blockchain, Cryptocurrency, and Investing.