Mt. Gox Payout in Cash Announced for Creditors in 2023

In a major development for creditors of the defunct bitcoin exchange, Mt. Gox, the rehabilitation trustee, Nobuaki Kobayashi, has confirmed plans to initiate cash repayments within the 2023 calendar year.
mt gox payout cover

In a major development for creditors of the defunct bitcoin exchange, Mt. Gox, the rehabilitation trustee, Nobuaki Kobayashi, has confirmed plans to initiate cash repayments within the 2023 calendar year. This Mt Gox payout program was communicated through emails to creditors, falls under the platform’s ongoing recovery efforts since its collapse in 2014.

On November 21, Kobayashi began sending emails to rehabilitation creditors, announcing the commencement of repayments. The trustee outlined his plans to start the initial repayments to creditors in cash in 2023, with a potential extension to 2024. However, specific timing details for individual repayments were not provided. The email reads:

“Due to the large number of rehabilitation creditors who will receive repayment, the varying types of repayments, and the different preparation and processing times required to make the repayment, repayments will continue into 2024.”

 mt gox payout
Source: X

Kobayashi clarified that the timing of individual repayments is yet to be determined. He encouraged creditors to monitor the repayment status through the dedicated claim filing system, as they will not receive advance notice regarding the exact timing of their compensation.

Mt Gox Payout: Trust Assets Redemption and Funding

The Mt. Gox trustee also announced the redemption of trust assets by receiving 7 billion Japanese yen ($47 million) in redemption to fund the repayment of claims. After the redemption, the trust assets amounted to 8.8 billion yen ($59 million). The announcement states:

“The rehabilitation trustee will continue preparations to make the base repayment, early lump-sum repayment, and the intermediate repayment.”

While the email specifically referred to cash payments, some of the hack victims are expecting to receive their substantial Bitcoin returns. The Mt. Gox trustee currently holds 135,890 BTC on known addresses, valued at nearly $5 billion. Moreover, its balance bot reveals that it holds an additional 3,795 BTC ($130 million) on unknown addresses.

Despite the optimism surrounding recent Mt. Gox developments, skepticism persists due to a history of failed repayments. Notably, the Mt. Gox trustee initially aimed to repay creditors by October 2023. However, in September 2023, the repayment deadline was officially extended to October 2024.

Related reading: Court Allows Mt. Gox to Delay Repayments by Another Year

SEC’s Lawsuit and Kraken’s Involvement

The repayment announcement followed the United States Securities and Exchange Commission’s (SEC) suing Kraken on November 21. Kraken, a major digital asset exchange, has played a substantial role in the repayment process for Mt. Gox hack victims.

Established in 2010, Mt. Gox was a dominant player in the Bitcoin exchange domain, handling 70% of all Bitcoin trades globally by 2013. However, in early 2014, the exchange faced a catastrophic downfall, halting withdrawals, suspending trading, and filing for bankruptcy protection after losing over 800,000 bitcoin. This event sent shockwaves through the Bitcoin community, raising concerns about the security and reliability of digital currency exchanges.

As the community awaits the unfolding of these developments, the Mt. Gox trustee’s commitment to cash repayments in 2023 brings a renewed sense of progress after years of anticipation.

Related reading:

US Government Charges Two Men in $400 Million Mt. Gox Hack

100% of your tips go directly to anishapandey135@getalby.com

Support writers: ⚡️ Tip The Author

Want Bitcoin-only Updates?

Weekly news roundups direct to your inbox!

Subscribe for Bitcoin-only Updates

Get weekly news roundups direct to your inbox!

TABLE OF CONTENTS

Get Published Now

To promote Hyper-Bitcoinization, we’re inviting all Bitcoiners to share their stories, analysis and opinions with us and get rewarded with Bitcoin!

News

Stay Informed And Up to Date!

Subscribe To Our Weekly Newsletter

Stay Informed with Breaking News

Get breaking Bitcoin-Only content delivered straight to your inbox every week!

Bitcoin-Only Content Sent Directly to your Inbox!