Mt. Gox, the Japanese Bitcoin exchange that suffered a notorious collapse in 2014, has started distributing repayments to its creditors in the form of Bitcoin and Bitcoin Cash today.
The exchange made an announcement earlier on its website that it had started making repayments to “some” of the creditors adding others would have to “wait a while” but has since removed the post.
Link is showing 404 now for some reason pic.twitter.com/WDVjQWpcVd
— db (@tier10k) July 5, 2024
In the statement, MtGox said payments were made through designated cryptocurrency exchanges etc in line with the rehabilitation plan.
“Repayments to other rehabilitation creditors will be promptly made once the some conditions have been met. We ask eligible rehabilitation creditors to wait for a while,” said Mt Gox on Friday.
Mt. Gox Collapse Triggered Years of Legal Proceedings
The repayments are being made after a decade since the exchange collapsed. The collapse of Mt. Gox triggered years of legal proceedings and efforts to recover the lost assets.
In 2018, approximately 200,000 Bitcoins were recovered, initiating a lengthy rehabilitation process under the oversight of a court-appointed trustee. Creditors have since been awaiting compensation, with multiple delays frustrating the process.
This latest distribution aims to compensate the users who lost their funds during the collapse. The exact details of the repayment plan, including the proportion of assets to be distributed and the timeline for completion, are closely watched by the crypto community.
Mt. Gox on Thursday transferred Bitcoin worth $2.7b to a new wallet address. It marks the exchange’s first significant transaction since May, following several smaller test transactions on Wednesday.
Bitcoin Price Dips to $54k
Despite the positive news on repayments finally being made. Bitcoin price is trading around the $54,300 mark, down 7% in the last 24 hours.
Analysts at K33 Research warn that re-entering such a large Bitcoin amount into the market could trigger price instability and put downward pressure on Bitcoin’s value.
The post Breaking: Mt Gox Starts Making Repayments in Bitcoin and Bitcoin Cash appeared first on Cryptonews.
