Mt. Gox Begins Repaying Creditors via PayPal
Mt. Gox, the defunct bitcoin exchange, has reportedly started repaying some of its creditors through PayPal. Last month, the exchange’s trustee announced that it would begin repaying creditors in cash soon.
In a Reddit thread, several users who claimed to be Mt. Gox creditors confirmed that they received their payments through PayPal. Users shared screenshots of email notifications from PayPal as proof.
One user from a Telegram group chat called “MtGoxCreditors” also confirmed receiving a payment in Japanese yen on December 25th from the Mt. Gox trustee via PayPal.
The trustee has not responded to The Block’s request for comment regarding these repayments.
Delayed Repayment Timeline
Last month, Mt. Gox informed creditors via email that the rehabilitation trustee is working towards commencing cash repayments by 2023. However, due to the large number of rehabilitation creditors, repayments may extend into 2024.
In September, Mt. Gox extended the deadline for creditor repayments from October 31, 2023, to October 31, 2024.
A Brief History of Mt. Gox
Launched in 2010, Mt. Gox was once the largest bitcoin exchange globally, accounting for 70% of all bitcoin trades by 2013. However, it suspended withdrawals and filed for bankruptcy protection in early 2014 after losing over 800,000 bitcoins.
Hot Take: Mt. Gox Makes Progress in Repaying Creditors
Mt. Gox has taken a step forward in fulfilling its promise to repay creditors by initiating payments through PayPal. This development comes after the exchange’s trustee announced plans to begin cash repayments. While there is still a long way to go, as repayments may continue into 2024, this progress brings hope to Mt. Gox creditors who have been waiting for years to recover their funds. It remains to be seen how the repayment process will unfold and whether all creditors will eventually receive their dues.
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