Defunct Bitcoin exchange Mt. Gox has announced that it will begin distributing assets stolen from clients in a 2014 hack, starting in July. The exchange, which was once the world’s largest Bitcoin exchange, was targeted by hackers who stole around 740,000 bitcoin, valued at $15 billion today. Since declaring bankruptcy in 2014, Mt. Gox has faced multiple delays in repaying victims, with the Tokyo court setting an October 2024 deadline for the exchange’s civil rehabilitation plan. The upcoming payouts will be made in Bitcoin and Bitcoin cash through partnered exchanges, with the order depending on the progress of due diligence with each platform.
Last month, Mt. Gox moved over 140,000 BTC, worth approximately $9 billion, from cold wallets for the first time in five years. This was likely in preparation for the repayments that are set to begin in July. The reimbursements are expected to distribute 142,000 bitcoin, 143,000 bitcoin cash, and 69 billion Japanese yen to around 127,000 creditors. Many victims have been waiting over ten years to recover their funds lost in the Mt. Gox collapse, and the July start date offers hope for those hoping to recoup stolen savings.
While the repayments are long-awaited, there are concerns that the large payouts could temporarily impact Bitcoin’s price if victims choose to sell part of their returned funds. Nonetheless, affected users are eager to move on from the Mt. Gox hack, which became symbolic of Bitcoin’s early days. The repayments mark an end to a chapter in Bitcoin’s history and provide closure for those who suffered losses in the exchange’s failure.
The Rehabilitation Trustee of Mt. Gox, Nobuaki Kobayashi, stated that preparations are being made to make repayments in Bitcoin and Bitcoin cash under the Rehabilitation Plan. Kobayashi mentioned that due diligence and safety steps are still required before the repayments can begin in July 2024. The exchange will be working with partnered exchanges to facilitate the repayments, with the order of payouts dependent on the progress of due diligence with each platform.
With victims finally seeing a light at the end of the tunnel after years of delays, some worry about the potential impact on Bitcoin’s price as large amounts of funds are returned to creditors. However, for many affected users, the upcoming repayments offer a sense of closure and the opportunity to move forward from the Mt. Gox hack and failure that left many with significant losses. The July repayments are expected to bring relief to those who have been patiently waiting to recover their stolen funds, and to finally put an end to the prolonged saga of Mt. Gox.