Mt.Gox’s $9B Bitcoin Repayment Could Be On The Horizon

After years of legal proceedings and negotiations, a rehabilitation plan proposed by Mt.Gox, once the largest Bitcoin (BTC) exchange, has gained significant traction as the long-awaited payout might finally be within reach. According to Bloomberg, this development aims to reimburse creditors with about $9 million worth of Bitcoin and Bitcoin cash from Mt.Gox’s assets.

Mt.Gox Users Receive Updates on Their Claims

Although the timing of the payout remains uncertain, the progress made thus far provides renewed hope for creditors who have endured years of uncertainty and frustration. According to some of the Mt.Gox creditors, updates have been sent regarding their claims. The updates also include the total number of digital tokens to be returned and to some creditors, the repayment deadlines. 

The payments to the creditors will be made in multiple installments. According to a user in December 2023, only part of his 0.125 BTC was repaid. The user received 30,283 yen (worth $200 at the current exchange rate leaving a balance of about $748). 

Mt.Gox was Once the Largest Bitcoin Exchange

Before its collapse, Mt.Gox was the largest Bitcoin exchange, processing about 70% of the world’s BTC transactions. In February 2014, Mt.Gox ceased trading, closed its website and exchange operations, and filed for bankruptcy protection against its creditors after being unable to recover from the impact of its hack. Exactly ten years ago, fraudulent withdrawals were initiated on the exchange’s platform leading to the loss of over 850,000 BTC.

The exchange transitioned from bankruptcy proceedings to civil rehabilitation, a debtor-friendly form of corporate restructuring in 2018, meaning creditors will receive BTC instead of a fiat sum.

Mt.Gox Shares Repayment Schedule

The recent development signifies the initial phase of repayments for all creditors. Notably, in September last year, Nobuaki Kobayashi, the trustee recovering funds on behalf of Mt.Gox formally adjusted the repayment deadline for rehabilitation creditor repayments from October 31, 2023, to October 31, 2024. 

At the time, the trustee said it acquired the approval of the Tokyo District Court, to revise the deadlines for Base Repayment, Early Lump-Sum repayment, and Intermediate Repayment.  Recall that the platform extended the window for registration to allow users interested in the Early Lump-Sum Repayment to complete their registration.