Key Takeaways
- Mt. Gox creditors have begun receiving repayments for Bitcoin held on the exchange for nearly a decade;
- The process involves assigning "voting rights" to claims to determine repayment amounts;
- Despite some initial system errors, repayments are expected to continue throughout 2024.
Creditors who suffered losses from the infamous Mt. Gox Bitcoin exchange have recently reported that they are starting to receive repayments for their trapped Bitcoin holdings.
This development comes almost a decade after the exchange's closure in February 2014.
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Reports shared across social media platforms, particularly on Reddit, indicate that Mt. Gox has initiated the process of sending Japanese Yen-denominated repayments via PayPal to its creditors.
On December 26, Reddit users on the r/mtgoxinsolvency forum began sharing their experiences of receiving repayments.
Some posted screenshots of emails containing PayPal receipts, confirming the arrival of funds. One user stated, "I just got paid," while another user initially mistook the email for a phishing attempt before realizing it was a genuine payment.
Notably, some creditors reported that only a portion of their claims had been repaid, leaving them still awaiting further funds.
A notable occurrence of the initial Mt. Gox repayments emerged on December 21, though, when a Japanese user reported on X (previously Twitter) about receiving their Mt. Gox claims via a bank transfer, subsequently credited as Japanese Yen to their account.
The process of repayment involves multiple tranches, including the base repayment, the early lump-sum repayment, and the intermediate repayment, ensuring a fair distribution of funds.
Mt. Gox's approach to determining repayment amounts involves assigning "voting rights" to each claim, equalizing the value between fiat and cryptocurrency creditors in Japanese Yen.
The commencement of repayments follows an email sent by the trustee overseeing Mt. Gox's estate, Nobuaki Kobayashi, on November 21.
The email informed rehabilitation creditors about the initiation of repayments in cash, with further repayments expected to continue throughout 2024. The specific timing of repayments to individual creditors was not disclosed.
Notably, there have been reports of a system error resulting in some creditors receiving double payments. According to a few Reddit users, the Mt. Gox Rehabilitation Trustee has acknowledged this issue through email correspondence and has requested the return of the excess funds.
