Creditors of Mt. Gox Receive Fiat Repayments via PayPal
Creditors of the now-defunct crypto exchange Mt. Gox have reported on Reddit that they are receiving fiat repayments for their trapped Bitcoin. According to recent posts on the Reddit page r/mtgoxinsolvency, Mt. Gox has started sending Japanese Yen-denominated refunds to users through PayPal. While these reports are yet to be confirmed, several Reddit users claim to have received payments.
The repayments come after the funds had been locked on the exchange since February 2014. One user shared a screenshot of an email containing a PayPal receipt, confirming the payment had been received in their account.
Mt. Gox Repayments Started in December 21
The first instance of these repayments was reported on December 21, when a Japanese user announced they had received their Mt. Gox claims via a bank transfer credited in Japanese Yen. This comes just a month after the trustee overseeing Mt. Gox’s estate began sending emails to rehabilitation creditors about the commencement of repayments.
In his email, the trustee informed creditors that cash repayments would begin in 2023, with the expectation of continuing in 2024. However, specific timing details were not provided for individual creditors.
This repayment process is a significant step forward for Mt. Gox creditors who have been waiting nearly a decade to recover their funds. The exchange’s collapse in 2014 resulted in the loss of approximately 850,000 Bitcoin, making it one of the largest hacks in cryptocurrency history.
The Infamous Hack of Mt. Gox
The collapse of Mt. Gox in 2014 after a hack led to the loss of hundreds of thousands of Bitcoins and the exchange filing for bankruptcy protection in Japan. Creditors have been in a legal battle for years to receive compensation. Mt. Gox ultimately located only a fraction of the lost Bitcoins.
Now, with the rehabilitation plan in place, creditors can hope to finally obtain some repayment, although specifics are still uncertain. The trustee has stated that approximately 99% of those waiting for their funds have voted in favor of a deal that will see them repaid around 90% of their funds.
Hot Take: Mt. Gox Creditors Finally Receiving Compensation
Creditors of Mt. Gox have begun receiving fiat repayments for their trapped Bitcoin, marking a significant development in their long-awaited compensation. Reports on Reddit indicate that payments are being made through PayPal in Japanese Yen. While the process is still unfolding and the timeline for full reimbursement remains uncertain, this is a positive step forward for affected users. The collapse of Mt. Gox in 2014 resulted in a massive loss of Bitcoin, and creditors have been waiting for nearly a decade to recover their funds. With the repayment process now underway, there is hope that creditors will finally be able to recover a significant portion of their investments.
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