Mt. Gox Creditors Reportedly Receiving Long-Awaited Repayments After Nearly a Decade

The post Mt. Gox Creditors Reportedly Receiving Long-Awaited Repayments After Nearly a Decade appeared first on Coinpedia Fintech News

Creditors of the defunct Mt. Gox Bitcoin exchange are reportedly receiving repayments, nearly a decade after it first shut down. Users on Reddit claim to have received funds, signaling progress in the long-standing case.

Mt. Gox Creditors Reclaim Funds

Reports are circulating on Reddit that creditors of the collapsed Bitcoin exchange, Mt. Gox, are finally beginning to receive repayments for their trapped Bitcoin after nearly a decade. 

Many users on the Reddit page r/mtgoxinsolvency claim that Mt. Gox is sending Japanese Yen-denominated repayments to users via PayPal, marking a significant development nearly ten years after the exchange shut down on Feb. 24, 2014.

One Reddit user, Free-end254, shared a screenshot of an email containing a PayPal receipt, exclaiming, “I just got paid.” Another user initially suspected a phishing scam but later confirmed receiving an actual payment in their PayPal account.

However, some users noted partial repayments, such as one who received 30,283 yen (approximately $200) for a 0.125 Bitcoin claim, still missing an approximate payment of $748.

Multi-Tranche Repayment Process

Repayments to Mt. Gox creditors will occur in multiple tranches, including the base repayment, early lump-sum repayment, and intermediate repayment. The repayment process commenced in December, with a Japanese user reporting the receipt of Mt. Gox claims via a bank transfer credited in Japanese Yen.

The trustee overseeing Mt. Gox’s estate, Nobuaki Kobayashi, sent emails to rehabilitation creditors on Nov. 21, notifying them of the repayment commencement. While the specific timing for individual creditors was not disclosed, Kobayashi anticipates continuing repayments throughout 2024.

Meanwhile, in September, the Mt. Gox Trustee extended the repayment deadline to Oct. 31, 2024, but hinted at potential early repayments by the end of the year for creditors who had provided necessary information, as reported by Coinpedia News.

While an official statement from Mt. Gox is pending, these recent developments suggest that long-awaited refunds may finally materialize. Notably, other crypto exchanges, such as FTX, are also in the process of reimbursing creditors following their bankruptcy last year.