Cryptocurrency exchange Mt. Gox begins making payments to creditors, total amount of payments exceeds 1.4 trillion yen
Mt. Gox, a virtual currency exchange that went bankrupt in February 2014, has announced that it has begun making payments to some of its debtors. The amount of payment will not be the full amount of BTC held by customers, but a significantly reduced amount. However, due to market fluctuations over the past 10 years, even if customers receive less BTC than they deposited, when converted into cash, it will still be more.
Notice regarding Repayment in Bitcoin and Bitcoin Cash
Mt. Gox begins repaying bitcoin to creditors a decade after exchange's collapse. What it means.
Remember Mt. Gox? Failed Bitcoin Exchange Set to Repay $9 Billion in Crypto | PCMag
https://www.pcmag.com/news/mt-gox-set-to-repay-users-9-billion-in-crypto
Mt.Gox was a Tokyo-based cryptocurrency exchange that was a major exchange handling 950,000 BTC at its peak. However, starting around May 2013, it was hit by multiple cyber attacks, resulting in the loss of 750,000 BTC that had been entrusted to it by customers and 100,000 BTC that the company held. With debts of 6.5 billion yen, the company filed for bankruptcy under the Civil Rehabilitation Act.
Bitcoin's Mt.Gox files for civil rehabilitation proceedings - GIGAZINE
Mark Karpeles, who was CEO at the time of bankruptcy, was charged with fraudulent creation of private electronic records and embezzlement for falsifying account data to make it appear as if there was a balance in the account. In 2019, he was sentenced to two years and six months in prison with four years of probation.
Efforts to repay debtors continued after that, and in May 2024, 140,000 BTC was moved from a wallet held by Mt. Gox to another wallet. This move was seen as an attempt to repay the debt.
The 140,000 BTC set aside for repayment is far less than the 750,000 BTC that was held by customers at the time of bankruptcy. However, at the exchange rate at the time of writing, the 750,000 BTC lost at the time is equivalent to about $400 million (about 64.1 billion yen), and the 140,000 BTC at the time of the announcement of the start of repayment is equivalent to about $9 billion (about 1.444 trillion yen).
'Mt. Gox customers have finally started receiving Bitcoin,' Karpeles said. 'It's been over 10 years and I was worried it would ever happen, but it's finally happened. It's been a long journey, but I'm happy to see we've finally gotten there.'
MtGox customers have finally started receiving Bitcoins! After over 10 years I wasn't sure anymore if it'd finally happen, but here we are finally!! This has been a long journey and I'm happy to see we're finally getting there, only a bit more...
— Mark Karpelès (@MagicalTux) July 5, 2024
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in Note, Posted by logc_nt