Mt. Gox Repayments Now Start Paying Out After 10 Years, BTC Drops Under 43K

Key Points:

• Reddit users confirm Mt. Gox has started refunding creditors via PayPal in Japanese yen, ending a decade-long wait for locked funds.
• Trustee Nobuaki Kobayashi acknowledges Mt. Gox repayments but cites an undetermined timeline due to the high number of creditors.

Creditors of the defunct cryptocurrency exchange Mt. Gox are reportedly beginning to receive long-awaited Mt. Gox repayments in fiat currency, Cointelegraph first reported the news.

Read more: Mt. Gox Postpones Repayment Deadline To October 2024

Creditors Finally Receive Fiat Mt. Gox Repayments After Nearly a Decade

Reddit users on the r/mtgoxinsolvency forum have shared posts indicating that Mt. Gox has initiated the refund process, sending payments to users via PayPal in Japanese yen. These funds, locked in the exchange since February 24, 2014, are now being released after almost a decade.

The trustee of Mt. Gox, Nobuaki Kobayashi, confirmed the Mt. Gox repayments in an email, stating that the specific timeline for repayment has not yet been determined due to the large number of creditors. Creditors are encouraged to check the repayment status through the claim filing system. After the news, Bitcoin immediately reacted as the price fell to $42,700.

Initial reports surfaced on December 21, with a Japanese X user revealing they received their Mt. Gox claims via a bank transfer, credited in Japanese Yen. This marks a significant development for those affected by the exchange’s cessation of withdrawals in early 2014, leading to its filing for bankruptcy protection after losing over 800,000 Bitcoins.

Founded in 2010, Mt. Gox was once the world’s largest Bitcoin trading platform by 2013. However, it faced a major setback in early 2014, prompting the halt of all withdrawals and the subsequent declaration of bankruptcy.

Nobuaki Kobayashi communicated the commencement of Mt. Gox repayments via email on November 21, outlining plans for cash repayments in 2023, with ongoing repayments expected into 2024. Despite the lack of specific details on individual repayment timings, this development signals a step forward in the lengthy process of refunding Mt. Gox creditors.