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24 June 2024

July 2024 could mark a significant milestone for former users of the defunct Mt. Gox cryptocurrency exchange, as the long-awaited repayment process is set to begin. Mt. Gox, which lost 850,000 Bitcoin in investor funds during its 2014 collapse, has announced that its rehabilitation trustee will start processing repayments in Bitcoin (BTC) and Bitcoin Cash (BCH) next month.

In an official statement issued on June 24, the Mt. Gox trustee confirmed that repayments will commence in July 2024. The statement reads: “The Rehabilitation Trustee will commence the repayments in Bitcoin and Bitcoin Cash in due course to the cryptocurrency exchanges with which the Rehabilitation Trustee has completed the exchange and confirmation of the required information for implementing the repayments.”

The trustee has urged patience among the creditors, emphasizing that the repayment order will depend on the readiness of each respective cryptocurrency exchange: “We will commence the repayments in the order of the cryptocurrency exchanges with which the Rehabilitation Trustee will complete the exchange and confirmation of the required information. Please wait for a while until the repayments are made.”

Over $9.4 Billion in Bitcoin Owed to Mt. Gox Creditors

More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 creditors of Mt. Gox. These creditors have been awaiting the return of their funds for over a decade, following the exchange’s collapse due to multiple unnoticed hacks.

In May 2024, Mt. Gox made headlines with the transfer of 141,686 BTC worth $9.62 billion into a new wallet, marking the first on-chain movement of funds from the exchange in over five years. This transfer was part of the repayment process, as confirmed by Mt. Gox rehabilitation trustee Nobuaki Kobayashi, who noted that the consolidation was in preparation for repayments.

The Fall of Mt. Gox and Its Impact on Bitcoin

Mt. Gox was once a dominant player in the cryptocurrency market, handling over 70% of all Bitcoin transactions. However, a series of security breaches between 2011 and 2014 led to the loss of over 850,000 BTC, worth approximately $51.9 billion at today’s prices. The exchange’s collapse in February 2014 caused Bitcoin’s price to plummet to a low of $420.

Despite the latest announcement from the Mt. Gox trustee, there remains a possibility of further delays in the repayment process. Initially, repayments were scheduled to begin by October 31, 2023, but the deadline was extended to September 2023.

As the cryptocurrency community closely watches the unfolding of Mt. Gox’s repayment plans, the upcoming July 2024 repayments could finally bring closure to one of the most significant events in Bitcoin’s history.