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Mt. Gox to Distribute Repayments in Bitcoin and Bitcoin Cash in July

Tanzeel Akhtar
Last updated: | 1 min read

Mt. Gox, the Japanese Bitcoin exchange that suffered a notorious collapse in 2014, is to begin distributing repayments to its creditors in the form of Bitcoin and Bitcoin Cash starting in July.

The collapse of Mt. Gox triggered years of legal proceedings and efforts to recover the lost assets. In 2018, approximately 200,000 Bitcoins were recovered, initiating a lengthy rehabilitation process under the oversight of a court-appointed trustee. Creditors have since been awaiting compensation, with multiple delays frustrating the process.

The latest filing shows starting in July 2024, the rehabilitation trustee will commence the repayment process, distributing BTC and BCH to creditors.

This distribution aims to compensate the users who lost their funds during the collapse. The exact details of the repayment plan, including the proportion of assets to be distributed and the timeline for completion, are closely watched by the crypto community.

Mt. Gox Owes Creditors 142,000 BTC

In May, Mt Gox moved billions in Bitcoin which in turn had an impact on the market. It is estimated the exchange owes its creditors 142,000 BTC (worth over $9 billion), which needs to be paid out before 31 October 2024.

It was suggested that creditors might start receiving their Bitcoin in May as noted by K33 Research analysts Anders Helseth and Vetle Lunde in an April 23 market note. The outstanding debt to Mt. Gox’s 127,000 creditors amounts to over $9.4 billion in Bitcoin, $72 million in Bitcoin Cash, and $445.8 million (69 billion Japanese yen).

The initiation of Bitcoin and Bitcoin Cash repayments by Mt. Gox marks an important milestone in resolving a decade-old financial debacle.

Bitcoin Price Drops Below $62,500

The price of Bitcoin has dipped below $62,500 as the entire crypto market witnessed one of the worst weekly drops of the year.

Bitcoin is trading at its monthly low of near $62,490 amid a six-day streak of outflows from US Bitcoin ETFs and uncertainty over monetary policies. Bitcoin price is down 6% in the last seven days.