Mt. Gox Begins Bitcoin and Bitcoin Cash Repayments to Creditors

Mt. Gox Bitcoin

Mt. Gox, the infamous Japanese Bitcoin exchange that collapsed in 2014, has started distributing repayments to its creditors today in Bitcoin and Bitcoin Cash.

Earlier today, the exchange announced on its website that repayments had commenced for “some” creditors, while others would have to “wait a while.” The post was subsequently removed.

According to the statement, Mt. Gox is making payments through designated cryptocurrency exchanges in accordance with the rehabilitation plan. “Repayments to other rehabilitation creditors will be promptly made once certain conditions have been met. We ask eligible rehabilitation creditors to wait for a while,” the exchange said.

Mt. Gox Collapse Triggered Years of Legal Proceedings

These repayments come a decade after Mt. Gox’s collapse, which led to years of legal battles and efforts to recover lost assets. In 2018, around 200,000 Bitcoins were recovered, initiating a prolonged rehabilitation process overseen by a court-appointed trustee. Creditors have faced multiple delays in the compensation process.

The current distribution aims to compensate users who lost funds during the collapse. Details of the repayment plan, including the proportion of assets and the timeline for completion, are closely monitored by the crypto community.

On Thursday, Mt. Gox transferred Bitcoin worth $2.7 billion to a new wallet address, marking its first significant transaction since May, following several smaller test transactions on Wednesday.

Bitcoin Price Dips to $54k

Despite the positive news of repayments, Bitcoin is trading around $54,300, down 7% in the last 24 hours. Analysts at K33 Research caution that reintroducing such a large amount of Bitcoin into the market could lead to price instability and downward pressure on Bitcoin’s value.