Mt. Gox to initiate $9 billion repayments in July
Mt. Gox is on the threshold of commencing repayment proceedings to its creditors, ending a decade-long hiatus. The appointed rehabilitation trustee has shared that the distribution of Bitcoin and Bitcoin Cash to the creditors will kick off in July 2024, offering a glimmer of hope to the myriad of users impacted by its fall.
The plan to start disbursing Bitcoin and Bitcoin Cash to the creditors is set to roll out "in due course," following successful exchanges and the affirmation of necessary information with partnering exchanges.
The trustee elaborates that the distribution process will roll out in phases, with the order of payments being determined by the preparedness level of the involved cryptocurrency exchanges.
An estimated 127,000 creditors are in line to receive more than $9.4 billion in Bitcoin, a staggering amount lost to the collapse of Mt. Gox in 2014. The exchange's downfall is linked to the unearthing of several undetected security breaches over the years, which led to the significant loss of over 850,000 BTC, valued at over $51.9 billion by today's standards.
In a notable move towards repayment in May 2024, Mt. Gox shifted 141,686 BTC, valued at $9.62 billion, to a newly established wallet address. This transaction marked the exchange's initial on-chain activity after more than five years.
The narrative of Mt. Gox has captivated many within the crypto community. At its zenith, it was responsible for over 70% of Bitcoin trades worldwide. Its sudden shutdown in 2014 had a monumental impact, triggering a significant drop in Bitcoin value to a temporary low of $420.
Even with the trustee's latest announcement, the timeline for repayment remains tentative, fostering a sense of cautious hope amongst the stakeholders. Initially, repayments were slated for completion by October 31, 2023, yet the timeline has seen adjustments. This sequence of deferrals underscores the uncertainty still surrounding the process.
