Cryptocurrency exchange Bitstamp announced via the social media platform X that the assets credited to creditors of the Mt. Gox Bitcoin exchange on Bitstamp are now fully accessible following the completion of security checks.
The repayments began on July 25 for the 20,000 former users of Mt. Gox who are slated to receive their funds in Bitcoin (BTC) and Bitcoin Cash (BCH).
Mt Gox Creditors Begin Receiving Bitcoin Repayments, Expect Gains Amid High BTC Value
For our customers in the UK, a separate distribution plan will be in place. We'll keep you informed as soon as we receive more information from the Mt. Gox Trustee.
— Bitstamp (@Bitstamp) July 26, 2024
Creditors who selected Bitstamp as their exchange will have their restored assets delivered to their Bitstamp accounts.
Pending necessary security checks, recipients are expected to gain full control of their assets within a week.
Many recipients are expected to realize notable gains, as Bitcoin was valued at around $600 at the time of the Mt. Gox collapse. Currently, Bitcoin is trading at $68,787, reflecting a 1.7% increase over the past 24 hours, according to CoinMarketCap data.
Jean-Baptiste Graftieaux, global CEO of Bitstamp, highlighted the significance of the repayments, stating,
“We’re proud to play our part in making the Mt Gox investors whole. It’s a testament to Bitcoin’s value as an asset that, although the Mt Gox investors should never have been unable to access their tokens, many will make a serious profit.”
However, Bitstamp users in the United Kingdom will have to wait a few more months before receiving their assets.
The announcement stated,
“While UK customers will not be included in the first tranche of distributions, UK customers can expect to receive their restored assets within the next few months and will receive more information in due course.”
Other exchanges are also working on repaying creditors. Kraken, for instance, completed its repayments to Mt. Gox creditors on July 24, as confirmed by Kraken CEO Dave Ripley.
1/ @krakenfx has successfully distributed #Bitcoin and Bitcoin Cash from the @mtgox estate back to creditors.
It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds. It was our privilege and it was our duty. pic. .com/ptKexzN4gm
— Dave Ripley (@DavidLRipley) July 23, 2024
Mt. Gox Creditors to Finally Receive Bitcoin Repayments After a Decade-Long Wait
The Mt. Gox creditors have been awaiting their funds for over a decade, with over $9.4 billion worth of Bitcoin owed to approximately 127,000 creditors. This long-awaited repayment is expected to relieve some of the potential sell pressure on Bitcoin, which has been a looming concern.
Mt. Gox transferred billions of BTC assets to Bitstamp and Kraken as part of its redistribution process. Bitstamp has already begun redistributing the funds to creditors, while Kraken has completed its part.
Bitstamp received over $657 million in BTC from Mt. Gox, including 2,237 BTC ($147 million) to one address (3QVD5) and another 382 BTC ($25 million) to a second address (3CgKH).
The redistribution process started in early July. Analysts describe it as overrated, noting that despite the significant on-chain activities, the Bitcoin price has not been significantly affected as anticipated.
Mt. Gox, which was operational from 2010 to 2014, was responsible for 70% of Bitcoin transactions at its peak.
The exchange began to experience problems in early 2014, with individuals reporting difficulties in withdrawing funds. By February of that year, Mt. Gox had suspended all trading activities.
On February 28th, 2014, Mt. Gox filed for bankruptcy protection in Japan, disclosing that around 850,000 Bitcoins, valued at approximately $450 million at the time, were missing.
Subsequent investigations revealed that Mt. Gox had been insolvent for a period prior to its collapse, with large amounts of Bitcoin unaccounted for due to security vulnerabilities and poor management.
Individuals impacted by the 2014 hacking incident have been waiting for a decade to receive compensation.
In June 2024, Mt. Gox Rehabilitation Trustee Nobuaki Kobayashi announced that repayments of Bitcoin and Bitcoin Cash would commence in July 2024.
At that time, the total value of the assets to be repaid was approximately $9 billion in Bitcoin and $55 million in Bitcoin Cash.