Markets
A promising development for creditors
Mount GoxJapanese crypto exchange goes bankrupt, will repay creditors Bitcoin And Bitcoin Cash active from July 2024. Following the announcement, the market sold off, with Bitcoin dip below $61,000.
In a June 24 statement, fellowship rehabilitation administrator Nobuaki Kobayashi said wrote:
“The Rehabilitation Trustee will begin Bitcoin and Bitcoin Cash refunds in a timely manner to the cryptocurrency exchanges with which the Rehabilitation Trustee has finalized the exchange and confirmation of information required to implement refunds.”
The company is expected to repay 142,000 BTC and 143,000 BCH to creditors, amounting to over $8 billion.
In addition, the trustee assured that the defunct exchange had “taken the time to ensure safe and reliable repayment to creditors, including technical solutions for safe repayments, compliance with the financial regulations of each country and discussion of modalities reimbursement with cryptocurrency exchanges”.
Therefore, he urged users of the failed crypto platform to “please wait a little while until refunds are issued.”
The news is a promising development for creditors of the defunct Mt. Gox exchange, who have been waiting for their assets for nearly a decade. In 2014, Mt. Gox suffered a massive hack resulting in the loss of 850,000 Bitcoins, now valued at over $57 billion. Following the hack, Mt. Gox filed for bankruptcy and began rehabilitation proceedings in 2018 to compensate creditors.
Since then, the process has been marred by Legal issuecreating prolonged uncertainty for users about the recovery of their funds.
However, things started to change last year after the company made refundswith reports indicating that some creditors received double payments.
Meanwhile, speculation about Bitcoin Refund began last month after members of the crypto community observed the movement of assets held by the rehab fiduciary for the first time in five years. At the time, the trustee demystified rumors that he would be selling off his large Bitcoin holdings of around 140,000 BTC, valued at $9 billion. Instead, he claimed the transactions were part of his preparations to repay creditors.