Cryptocurrency Exchange Mt. Gox Reimbursement
Creditors of the now-defunct cryptocurrency exchange Mt. Gox are reportedly starting to see payments of their claims, a decade after the platform's collapse due to insolvency.
Recent posts and comments on Reddit indicate that creditors who opted for PayPal as their payment method are now receiving their Bitcoin (BTC) and Bitcoin Cash (BCH) balances converted into Japanese Yen (JPY).
In the Mt. Gox insolvency subreddit, user Mat Phillips shared that he received 30,283 JPY ($212) in his PayPal account for a claim of 0.125 in BTC and BCH.
His claim form suggests a total entitlement of 106,502 JPY ($747), prompting him to inquire about additional payments.
The community assured Phillips and others that further payments would be made, emphasising the resolution of all claims over time.
Double Payments Received
Meanwhile, some users reported receiving double payments and raised concerns about how the Mt. Gox rehabilitation trustee would address the issue.
One creditor commented,
"Um… I think I got paid twice? I received two transactions, each of which seems equal to the total of the BTC/BCH Non-allotment (JPY) amounts. So… Merry… Christmas…?"
The unexpected payments served as a Christmas surprise for creditors who had almost given up hope of recovering their claims after years of uncertainty.
The Mt. Gox trustee has extended the repayment deadline multiple times, with the current cutoff set for 31 October 2024.
Community members suggested that timely and error-free registrants might be paid by the close of 2023, though no guarantees were provided.
Mt. Gov Collapse
Mt. Gox faced turmoil in 2011 when it suffered a hack resulting in the loss of 25,000 BTC.
Subsequently, in 2014, another hack led to the loss of an additional 750,000 BTC.
These events caused the collapse of the platform, affecting around 24,000 creditors.
Four years later, Mt. Gox initiated civil rehabilitation proceedings to compensate users for their losses.
Despite the hacks, the defunct firm still holds assets comprising 142,000 BTC, 143,000 BCH, and 69 billion JPY.