Creditors of the now-defunct digital asset trading platform Mt. Gox are finally witnessing the initiation of the compensation process for their long-blocked Bitcoin deposits after enduring a decade of uncertainty and numerous delays.
As the trustee overseeing the estate has begun the process, Mt Gox payouts have officially started, with creditors reporting their accounts being credited with Japanese yen through PayPal.
Creditors Shed Light on Repayments
Several posts and comments on Reddit have shed light on the initial stages of the repayment process. Creditors who opted for PayPal as their preferred payment method are now seeing their Bitcoin (BTC) and Bitcoin Cash (BCH) balances converted into Japanese Yen (JPY).
Screenshots of PayPal receipts have circulated online, confirming the start of repayments. However, the process is expected to extend into 2024 due to the substantial number of rehabilitation creditors and the intricacies of the repayment procedures.
One Reddit user, Free-end254, shared a screenshot of the PayPal receipt, affirming the payment and indicating that repayments would continue into 2024. The complexity of the repayment process has led to some users receiving double payments, prompting questions about how the Mt. Gox rehabilitation trustees plan to address such instances.
Mat Phillips, another user on the Mt. Gox insolvency subreddit, received 30,283 JPY ($212) for a claim of 0.125 in BTC and BCH, falling short of the total claim amount of 106,502 JPY ($747) specified in his claim form. Community members reassured users like Phillips, emphasizing that more payments would be made and all claims would be resolved in due course.
Some users claimed to receive double payments as well. However, they have also been requested to return the duplicate funds.
a 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…?”
Mt Gox Payouts Schedule
The repayment process involves various tranches, including basic repayment, early lump-sum repayment, and intermediate repayment. The entire procedure is expected to continue until 2024, providing relief to creditors who have patiently awaited the return of their funds.
This recent development follows an email communication from Nobuaki Kobayashi, the trustee overseeing Mt. Gox’s estate, on November 21, announcing the commencement of repayments. While specific timing for individual creditors was not provided, Kobayashi emphasized that the process would extend into the following year. In September, the court allowed Mt. Gox extended the repayment deadline to October 31, 2024, providing additional time for the complex compensation process.
“Due to the large number of rehabilitation creditors who will receive repayment, the varying types of repayments, the different preparation and processing times required to make the repayment, repayments will continue into 2024,” read the announcement.
The Mt. Gox saga began in 2011 when the exchange suffered a hack, resulting in a loss of 25,000 BTC. Subsequently, in 2014, another hack led to the loss of an additional 750,000 BTC, causing the platform’s collapse. Civil rehabilitation proceedings began four years later, aiming to compensate approximately 24,000 creditors affected by the events. After a long and arduous journey, creditors are finally witnessing the first signs of their awaited compensation.
