Mt. Gox has initiated its long-awaited repayment process to creditors. The defunct cryptocurrency exchange, which suffered a massive security breach in 2014, is now confirming Bitcoin and Bitcoin Cash addresses with its creditors. This move is a key part of the plan to repay a substantial portion of the lost funds.

Mt. Gox’s Progress in the Repayment Process

The trustee of Mt. Gox has been actively reaching out to creditors to verify their identities and the existence of their accounts on cryptocurrency exchanges. This verification is crucial for facilitating the repayment of Bitcoin (BTC) and Bitcoin Cash (BCH).

Creditors, moreover,  have reported receiving emails from the trustee confirming the completion of this process. These emails, as shared on Mt. Gox’s insolvency hub on Reddit, indicate that the exchanges involved have confirmed the account ownership with the trustee.

The repayment process involves major cryptocurrency exchanges like Bitstamp and Kraken. Most confirmations of these emails have come from Bitstamp users, with a few Kraken users also acknowledging receipt.

Interestingly, even as Bitstamp ceased operations in Canada on January 4, 2024, it has committed to continue servicing Canadian accounts involved in the Mt. Gox settlement. These accounts, however, are limited to withdrawal functions only, with other services like deposits and trading no longer available.

Historical Context and Repayment Scale

Mt. Gox’s downfall was a pivotal moment in the cryptocurrency world. Established in 2010, it was the dominant Bitcoin exchange, handling about 70% of all BTC transactions. The 2014 security breach, leading to the loss of 850,000 BTC, marked one of the biggest bankruptcies in the crypto industry.

The planned repayment, a significant undertaking, involves returning 142,000 Bitcoin, 143,000 Bitcoin Cash, and 69 billion Japanese yen (approximately $510 million) to creditors by October 2024.

In addition to cryptocurrency repayments, the Mt. Gox trustee has also been advancing with bank account repayments. Reports from late December 2023 indicate that some creditors have already started receiving these payments. This dual approach of bank and cryptocurrency repayments marks a comprehensive effort to resolve one of the most prolonged sagas in the history of digital currencies.

Read Also: Michael Saylor Shares Cryptic Post, Is Next #Bitcoin Buyup in View?

The post Mt. Gox Advances in Bitcoin Repayment Process, Engages Creditors appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am