Markets
A promising development for creditors
Mount GoxBankrupt Japanese cryptocurrency exchange will repay creditors Bitcoin AND Bitcoin Cash assets starting in July 2024. After the announcement, the market suffered a sell-off, with Bitcoin immersion less than $61,000.
In a June 24 statement, the exchange’s rehabilitation trustee, Nobuaki Kobayashi, he wrote:
“The Rehabilitation Trustee will in due course commence Bitcoin and Bitcoin Cash refunds to cryptocurrency exchanges with which the Rehabilitation Trustee has completed the exchange and confirmation of the information required to implement refunds.”
The company is ready to repay creditors 142,000 BTC and 143,000 BCH, amounting to over $8 billion.
Furthermore, the trustee assured that the defunct exchange “has taken time to ensure safe and reliable repayment to creditors, including technical remedies for safe repayments, compliance with financial regulations in each country and discussion of repayment agreements with exchanges of cryptocurrency”.
As a result, he urged users of the failed crypto platform to “wait a bit until refunds are made.”
This news is a promising development for creditors of the defunct Mt. Gox exchange, who have waited nearly a decade for their assets. In 2014, Mt. Gox suffered a massive cyberattack that resulted in the loss of 850,000 Bitcoin, valued today at over $57 billion. Following the hack, Mt.Gox declared bankruptcy and began rehabilitation proceedings in 2018 to compensate creditors.
Since then, the trial has been ruined legal issuescreating prolonged uncertainty for users regarding the recovery of their funds.
However, things began to change last year following the feat has issued some refundswith reports indicating that some creditors have received double payments.
Meanwhile, speculation on the Bitcoin refund began last month after members of the crypto community observed the movement of assets held by the Rehabilitation Trustee for the first time in five years. At that time, the trustee debunked rumors that he was divesting his substantial Bitcoin holdings of around 140,000 BTC, valued at $9 billion. Instead, he assured that the transactions were part of preparations to repay creditors.