Key Insights
- Mt. Gox, the cryptocurrency exchange that collapsed in 2014 after losing 850,000 bitcoins, will begin repaying users in July 2024.
- Repayments will be made in Bitcoin and Bitcoin Cash through selected cryptocurrency exchanges.
TOKYO (MarketsXplora) – Mt. Gox, the once-dominant cryptocurrency exchange that collapsed in 2014 after losing 850,000 bitcoins, is set to begin repaying its former users starting July 2024, marking a significant milestone in one of the crypto industry’s most notorious scandals.
The rehabilitation trustee overseeing the defunct exchange’s bankruptcy proceedings announced on Monday that repayments will be processed in Bitcoin and Bitcoin Cash, bringing a glimmer of hope to thousands of users who have waited nearly a decade to recover their funds.
“We will commence the repayments in the order of the cryptocurrency exchanges with which the Rehabilitation Trustee will complete the exchange and confirmation of the required information,” the trustee stated in a written note, urging users to remain patient as the process unfolds.
BREAKING: Mt Gox to start $BTC and $BCH repayments in July. Expect turbulence, especially with Fed week this week too.
The Tokyo-based Mt. Gox was hacked in 2011 and went bankrupt in 2014 after it lost 850,000 #BTC. It will repay creditors around $9 billion in #Bitcoin,… pic.twitter.com/VXAzGnLncg
— Ken Standfield (Inventor – CTKS Method) (@StandfieldKen) June 24, 2024
The announcement comes after years of legal battles and negotiations, signaling progress in the complex rehabilitation process that has dragged on since Mt. Gox’s spectacular collapse, which sent shockwaves through the nascent cryptocurrency market.
According to the trustee, the necessary groundwork has been laid for the repayment process, including the exchange and confirmation of required information with certain cryptocurrency exchanges that will facilitate the distributions.
The order in which users receive their repayments will depend on the respective cryptocurrency exchanges involved, with the trustee emphasizing that the process will be carried out systematically.
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