Mt Gox to begin Repayment in Bitcoin and Bitcoin Cash to Creditors starting July 20

Defunct bitcoin exchange Mt. Gox has announced in a notice sent by Rehabilitation Trustee Nobuaki Kobayashi on Monday that Mt. Gox will start distributing bitcoin and bitcoin cash repayments starting in the first week of July. This new development is coming years after continually moving deadlines.

The document titled ‘Notice regarding Commencement of Repayments in Bitcoin and Bitcoin Cash’ stated that, in accordance with the Rehabilitation Plan, the Rehabilitation Trustee has been preparing to repay debts with Bitcoin and Bitcoin Cash. With everything set up, the Rehabilitation Trustee will now start the repayments in Bitcoin and Bitcoin Cash to the cryptocurrency exchanges after the Rehabilitation Trustee has completed the exchange and verified the information needed to carry out the repayments. Repayments are scheduled to begin at the beginning of July 2024.

“We have taken the necessary time to guarantee creditors receive safe and reliable payments. This includes talking through repayment plans with cryptocurrency exchanges, adhering to national financial regulations, and implementing technical solutions for secure repayments. We will start paying back the cryptocurrency exchanges in the order that the Rehabilitation Trustee completes the exchange and verifies the necessary data. Please give it some time before the repayments are processed.” 

More than 70% of all bitcoin transactions were initially processed by Mt. Gox, which was formerly the largest cryptocurrency exchange in the world. Around 850,000 bitcoins (worth $56 billion at today's prices) were lost as a result of an exchange hack that occurred in early 2014. A number of attacks on the exchange occurred between 2010 and 2013, the largest of which was the hack. A Tokyo court last year gave trustees, who have been working on a repayment plan for a number of years, a deadline of October 2024. 

The recent repayment announcement follows the disclosure by the creditors of Mt. Gox that the trustee's rehabilitation claims system had been updated with the amount of bitcoin and bitcoin cash that needed to be paid back, along with the April completion date for repayment. Then, in May, for the first time in five years, Mt. Gox moved at least $2.9 billion worth of bitcoin. 

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