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Mt. Gox Creditors to Receive Repayments Soon, Trustee Plans Distribution of BTC, BCH, and Yen

Hassan Shittu
Last updated: | 2 min read
Mt. Gox
Source: AdobeStock / 24K-Production

Nobuaki Kobayashi, the trustee overseeing the Mt. Gox Bitcoin exchange’s estate, has initiated communication with rehabilitation creditors, indicating the imminent start of repayments. This development follows the notorious 2014 hack that resulted in the loss of 850,000 BTC.

As of November 21, Kobayashi began sending emails to rehabilitation creditors outlining the commencement of repayments, as per reports circulating on various social media platforms.

Kobayashi said in the email

“The Rehabilitation Trustee plans to commence repayment to creditors shortly. The Rehabilitation Trustee is making efforts to commence repayments in cash within the 2023 calendar year. However, 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.”

According to snippets shared from the alleged email, the trustee plans to initiate the first round of repayments in cash during the year 2023. The email did not specify the exact timing of repayments for individual rehabilitation creditors but mentioned the intention to continue the process into 2024.

Rehabilitation Trustee Nobuaki Kobayashi said in the email,

“The specific timing of repayment to individual rehabilitation creditors is undetermined, and therefore, it will not be possible to provide advance notice to each rehabilitation creditor regarding the specific timing of their repayment.”

Mt. Gox, once a prominent Bitcoin exchange, faced a devastating cyberattack in 2014, leading to the loss of a significant amount of Bitcoin. Since then, the legal and rehabilitation processes have been protracted, leaving creditors eagerly anticipating the recovery of their funds.

Mt. Gox Rehabilitation Trustee Receives $47 Million for Creditor Repayments

However, according to an official document sent to creditors on November 22, the rehabilitation trustee received a redemption of 7 billion Japanese yen ($47 million) aimed at funding the repayment of claims. The remaining trust assets following this redemption were reported to be 8.8 billion yen, or approximately $59 million.

“We hereby announce that on November 17, 2023 (JST), the Rehabilitation Trustee received the redemption of JPY 7,073,684,082 from the Trust Assets as the amount necessary to fund the repayment of the Claims. The amount of the Trust Assets after such redemption is JPY 8,812,899,304.”

In the document, Kobayashi informed creditors that this redemption signals the commencement of repayments. The trustee mentioned that due to the large number of rehabilitation creditors, varying types of repayments, and the different preparation and processing times required, repayments will extend into 2024.

This recent move follows a September announcement in which Mt. Gox extended the deadline for rehabilitation creditor repayments from October 31, 2023, to October 31, 2024.

Cryptocurrency enthusiasts and creditors have expressed cautious optimism, interpreting this development as a promising step towards the long-awaited restitution of funds. Many view it as a significant move forward in the complex legal and rehabilitation processes surrounding Mt. Gox.

While many in the Mt. Gox community are cautiously optimistic about the development, some observers note that the recent communication only mentioned cash payments, while Wu Blockchain had reported that “Mt. Gox will distribute 142,000 BTC, 143,000 BCH, and 69 billion yen, among others.” Many victims of the Mt. Gox hack are expecting the return of substantial amounts of Bitcoin. The trustee currently holds 135,890 BTC on known addresses, valued at nearly $5 billion.

Community discussions indicate a mixture of hope and skepticism, with some acknowledging the progress represented by cash payments while others express concerns about the protracted history of delays in repayments.