The trustee overseeing the Mt. Gox cryptocurrency exchange, which suffered a significant hack, is making progress towards repaying Bitcoin (BTC) to creditors. This development comes as the trustee initiates contact with creditors to verify their identities and confirm the existence of their accounts.
Many creditors of Mt. Gox have reported receiving emails regarding the completion of identity verification for their crypto exchange accounts. These accounts are designated for receiving repayments in Bitcoin (BTC) and Bitcoin Cash (BCH). An email shared on the Mt. Gox insolvency hub on Reddit, dated January 22, indicates that a crypto exchange identified in the user’s rehabilitation claim has verified account ownership with the trustee. The exchange is now prepared to process the user’s subscription for receiving BTC/BCH repayments.
The email warns that repayments in BTC/BCH might not be possible if the account becomes disabled or frozen in the future. This cautionary note underscores the importance of maintaining active and compliant exchange accounts for the repayment process.
Several Reddit users have confirmed receiving such emails, particularly from the Bitstamp exchange. A number of Kraken users also reported receiving confirmation, though the majority of Kraken users are still awaiting such communication.
Some exchanges involved in the repayment process have informed their users of continued support for Mt. Gox-related customers, even after withdrawing from certain jurisdictions. For instance, Bitstamp, which ceased operations in Canada as of January 4, 2024, will continue to service Canadian accounts linked to the Mt. Gox settlement. These accounts, however, will be limited to withdrawal functions only, with other services like deposits and trading being unavailable.
The trustee is also moving forward with bank account repayments. The first reports of Mt. Gox repayments emerged in late December 2023, with some creditors receiving double payments.
Founded in 2010, Mt. Gox was once the world’s largest Bitcoin exchange, handling approximately 70% of all BTC transactions before its collapse. The exchange lost 850,000 BTC in a 2014 security breach, marking one of the most significant bankruptcies in the crypto world.
Mt. Gox is slated to repay its creditors a total of 142,000 Bitcoin and 143,000 Bitcoin Cash, along with 69 billion Japanese yen (about $510 million), by October 2024. This repayment plan is a crucial step in addressing the aftermath of one of the most infamous incidents in the history of cryptocurrency.
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