Mt. Gox Creditors Report Receiving Payouts for 2014 Bitcoin Hack; Some Receive Double

Published: Dec 26, 2023
Written By:
Vignesh Karunanidhi
Milk Road Writer

Almost a decade after the largest cryptocurrency hack in history, creditors of the defunct Mt. Gox exchange are finally seeing the first reimbursements. The exchange witnessed the theft of approximately 800,000 Bitcoin now worth over $34 billion.

  • Mt. Gox creditors receive payouts following the 2014 BTC hack.
  • Over $34 billion was stolen from the exchange.
  • Payments made so far via PayPal in Japanese yen.
  • Ends years-long repayment delay saga for hack victims.

Based on multiple Reddit posts in recent days on the mtgoxinsolvency forum, some former Mt. Gox users have successfully received monetary disbursements as the rehabilitation process slowly gets underway.

“I just got my initial payment via Paypal!! I was sure it was a phishing attempt on my email, but nope legit money in JPY,” wrote one creditor, with several others confirming receipt of funds.

So far, payouts have been transmitted through PayPal in Japanese yen, while bank account transfers are reportedly still pending.

Read more: SEC Apologizes To Judge For ‘Shortfalls’ In DEBT Box Case

One Mt. Gox user claims to have received double reimbursement

One user even claimed receiving double the expected reimbursement due to a “lucky error” enabling a quick withdrawal.

The payments represent a major milestone in resolving one of the crypto industry’s biggest hacks. After Mt. Gox halted withdrawals in early 2014 upon discovering a massive hack, some 24,000 creditors were left in limbo with no recourse to recover stolen funds.

The company was quickly declared bankrupt with over 800,000 Bitcoin gone, valued at nearly $500 million at the time and today topping $34 billion based on current market prices.

Years of legal disputes and complications from bitcoin price volatility delayed a civil rehabilitation process approved in 2018 that would finally make victims whole again.

The reported reimbursement follows a mail from the Mt. Gox rehabilitation trustee on November 22 stating that efforts are underway to commence repayments.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.