Mt. Gox is approaching the final phase of its long-anticipated compensation process for creditors. According to an April 21 report shared on Reddit, the defunct exchange is projected to disburse 142,000 Bitcoin (BTC), 143,000 Bitcoin Cash (BCH), and 69 billion Japanese yen ($510 million) by October 2024.
Some Mt. Gox Creditors Received Repayment
Several Mt. Gox creditors have reported updates to their claims accounts, indicating progress in receiving cryptocurrency and fiat repayments. Reports first surfaced on the Mt. Gox insolvency Subreddit in mid-April, with users noting the amounts to be paid in the repayment data table on their accounts.
One creditor shared an updated screenshot that revealed a table in their Mt. Gox claims account that displayed repayment status, completed repayment amounts, and outstanding amounts.
Some creditors have also claimed they received fiat currencies in their bank accounts.
“Money received as USD into HSBC currency account and looks like zero fees,” a creditor wrote. “Table had been updated 15th March first then 08 April second then 18th when BTC lines arrived. Hang in everyone your time will come!”
Meanwhile, the latest update from MT.GOxBalanceBot shows that the defunct exchange’s BTC wallet address holds 137.89K BTC. There have been no deposits or withdrawals since May 10, 2018.
Total current balance on all known addresses* of the MtGox Trustee: 137890.98188037 BTC.
0 BTC have been moved away from these addresses since 2018/05/10. $BTC #bitcoin #mtgox mt.gox mt gox
2024-04-22T13:01:25.685Z
— MtGoxBalanceBot (@MtGoxBalanceBot) April 22, 2024
The recent updates have elicited mixed reactions among Mt. Gox creditors. While some creditors are skeptical, others speculate that Mt. Gox repayments might commence earlier than expected, possibly concluding before the scheduled date of October 31.
Recall that the defunct exchange started its repayment to creditors in December 2023.
Mt.Gox creditors will start receiving payments by the end of the year, according to emails received from the liquidator. pic. .com/wICq9EnPJV
— Sjuul | AltCryptoGems (@AltCryptoGems) November 22, 2023
It was also reported that some Mt. Gox creditors received double payments in their bank accounts.
Oversight of Mt.Gox Crash and Potential Impact on BTC Price
The now-defunct Mt. Gox was once the world’s largest Bitcoin exchange before it suffered a massive hack in 2014, resulting in the loss of 850,000 Bitcoin. The stolen Bitcoins are now valued at over $57 billion.
Following the theft, the exchange filed for bankruptcy protection and commenced “rehabilitation proceedings” in 2018 to compensate affected creditors.
Delays and uncertainties ensued due to legal disputes and other challenges, leaving users confused about the return of their funds.
Experts anticipate major selling pressure in October, following the progress of the repayment plan in 2024, as assets are liquidated due to the extended wait endured by Mt. Gox’s creditors, spanning nearly a decade.