Mt. Gox, a Japanese Bitcoin exchange that famously collapsed in 2014, has announced plans to start repaying its creditors with Bitcoin and Bitcoin Cash beginning in July.
After years of legal proceedings and asset recovery efforts, around 200,000 Bitcoins were finally recovered in 2018, prompting a lengthy rehabilitation process overseen by a court-appointed trustee. The process has been plagued by numerous delays, leaving creditors waiting for compensation.
In a recent filing, it was revealed that the rehabilitation trustee will begin the repayment process in July 2024, distributing BTC and BCH to creditors in an effort to compensate those who lost funds during the exchange’s collapse. The crypto community is closely monitoring the details of the repayment plan, including the proportion of assets to be distributed and the timeline for completion.
With Mt. Gox owing its creditors 142,000 BTC, worth over $9 billion, the exchange’s recent movement of billions in Bitcoin has had a significant impact on the market. Creditors are hoping to start receiving their Bitcoin in May, as suggested by analysts, before the October 31, 2024 deadline.
The outstanding debt to Mt. Gox’s 127,000 creditors consists of over $9.4 billion in Bitcoin, $72 million in Bitcoin Cash, and $445.8 million (69 billion Japanese yen).
The initiation of Bitcoin and Bitcoin Cash repayments by Mt. Gox is a significant step towards resolving a decade-old financial disaster.
Meanwhile, the price of Bitcoin has dropped below $62,500, marking one of the worst weekly drops of the year for the entire crypto market. Amid a six-day streak of outflows from US Bitcoin ETFs and uncertainty over monetary policies, Bitcoin is currently trading at its monthly low of around $62,490, representing a 6% decrease over the last seven days.
