After enduring a lengthy wait, creditors of the defunct cryptocurrency exchange Mt. Gox have finally commenced receiving reimbursements for their Bitcoin (BTC) holdings that were locked up on the platform since February 2014.
Speculations surfaced on December 25 on the mtgoxinsolvency Reddit page, suggesting that Mt. Gox had begun processing refunds in Japanese yen through PayPal, nearly ten years after the funds became inaccessible on the exchange in February 2014.
A Reddit user, Free-end254, shared that they received payments and provided a screenshot as confirmation from PayPal. Another user corroborated, stating they initially mistook the communication for a phishing attempt but indeed received funds.
In late November, Mt. Gox creditors received an email from the bankruptcy trustee, signaling the start of payment initiation. However, due to various payment types and processing complexities, disbursements are expected to continue into 2024. The distribution among creditors will involve different asset types.
Previously in September, the court granted Mt. Gox an extension until October 31, 2024, for the repayment deadline to the hacking victims. Initially, it was anticipated that creditors’ losses would be compensated by the end of October, but the trustee, Kobayashi, cited the impossibility of completing payments by the agreed date.
The repayment delay has been an enduring issue for Mt. Gox creditors, spanning almost a decade with multiple postponements. As the debts start getting settled, there could be potential implications for the Bitcoin market, particularly as creditors may begin selling or exchanging the received crypto assets.
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