Nearly a decade after its collapse, defunct crypto exchange Mt. Gox is gearing up to start compensating creditors after prolonged delays, according to an email sent to claimants this week.
In an email to creditors on November 22, Mt. Gox rehabilitation trustee Nobuaki Kobayashi said efforts are underway “to commence repayments in cash within the 2023 calendar year.” This marks a major milestone for creditors who have been waiting for years to recover funds lost when Mt. Gox went bankrupt in 2014 after a major hack.
Repayments Could Stretch Into 2024
However, Kobayashi cautioned that repayments are likely “to continue into 2024.” With several thousand creditors due compensation, the repayment process is expected to be prolonged.
- Email update sent to Mt. Gox creditors on repayment plans
- Cash repayments to start within 2023 after multiple delays
- Repayment timelines for individuals are still undetermined
Collapse of one of the “World’s Biggest Bitcoin Exchange”
Mt. Gox was launched in 2010 and became the largest Bitcoin exchange, handling 70% of all Bitcoin trades by 2013. However, trouble began brewing in 2014 when Mt. Gox stopped customer withdrawals after discovering a major Bitcoin theft believed to involve over 800,000 Bitcoin.
The company filed for bankruptcy protection soon after and entered civil rehabilitation proceedings in 2018 aimed at compensating creditors. However, repayment plans have faced repeated delays over the years due to legal disputes and bitcoin market swings.
As the first cash disbursements get underway, years of waiting may finally end for thousands of customers affected by one of the biggest crypto debacles to date.