Mt. Gox Inches Closer to Bitcoin Repayments: Report
The trustee overseeing defunct cryptocurrency exchange Mt. Gox is reportedly moving forward with repaying customers eight years after an infamous hack drained 850,000 Bitcoin from the exchange.
Recent emails shared on the mtgoxinsolvency subreddit group to former Mt. Gox users request confirmation of identity, exchange account ownership, and other particulars essential to dispatching owed funds.
Key context on the Mt. Gox situation:
- Lost 850K BTC in the 2014 hack, equivalent to $33 billion today.
- Recovered and is repaying ~20% of stolen crypto to users.
- The exchange recently made some bank repayments in the Japanese yen.
- Mt. Gox is confirming user details to send Bitcoin and Bitcoin cash.
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Signs of progress in compensating Mt. Gox victims come as the crypto industry grapples with the fallout from the FTX implosion, drawing unflattering comparisons between two major exchange failures.
Mt. Gox Owes Users Billions In Crypto
While precise totals aren’t public, repaying 20% of lost bitcoin from Mt. Gox would equate to over $6 billion at current market prices. Experts say the sudden inflow risks impacting Bitcoin markets depending on timing and recipient behaviors.
So far, users of exchanges Bitstamp and Kraken appear most affected by identity verification requests and special account arrangements to handle the Mt. Gox payouts. Additionally, Kraken said they will keep servicing Mt. Gox creditors in certain banned jurisdictions exclusively for withdrawal purposes as repayments commence.
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Mt. Gox creditors have been waiting for a resolution since 2014 when the hack brought down what was then the world’s largest Bitcoin trading platform. The exchange ultimately collapsed into a years-long bankruptcy proceeding as authorities pursued those responsible for one of crypto’s largest theft cases.
While the repayment process may not fully restore the losses incurred by the victims, the gradual progress made by the trustee signifies a measure of justice for those affected by the dramatic downfall of Mt. Gox.
