The popular bankrupt cryptocurrency trading platform Mt. Gox has started repaying its creditors after a series of delays spanning up to a decade.
According to reports from some of the beneficiaries of the refund, the repayment has started rolling in. Though there is no official confirmation from the exchange at the moment, the reported repayment underscores the promises from the exchange’s trustee last month that it will start making payments in a short time.
The repayment is currently domiciled in Japanese Yen, and with PayPal, liquidating into other currencies may be possible.
Historic Mt. Gox Insolvency and Repayment
At its prime, Mt. Gox ranked as the biggest crypto trading platform and operated out of Japan. The exchange’s reign came to an end when it suffered a devastating hack in 2014 with the hacker carting away with about 740,000 Bitcoin stolen at the time.
While a significant quantity of the Bitcoin was retrieved, the complications to repaying creditors made the repayment proceedings more complicated than envisaged.
After much deliberation, cash repayment to general creditors was agreed upon with some select creditors like Bitcoinica and MtGox Investment Funds (MGIF) successfully reaching a deal to get paid in crypto.
With the delays now over, emails reportedly received by the recipients confirmed that the repayments will continue until 2024 owing to the large number of transactions that are poised to be processed.
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“Due to the large number of rehabilitation creditors who will receive repayment, the varying types of repayments, the different preparation and processing times required to make the repayment, repayments will continue into 2024,” the shared email reportedly reads.
More Settlement Days Ahead
The Mt. Gox settlement spells a good omen for other crypto-based entities that are neck deep into their bankruptcy proceedings. Firms like Celsius Network, BlockFi, FTX Derivatives Exchange, and Voyager Digital that went bankrupt last year are yet to make repayments to their customers and creditors.
In all, the repayment to Mt. Gox customers prove that irrespective of the length of time, the tenet of trust in crypto may still be upheld and eligible claimants will get part of their funds back.