Defunct exchange Mt. Gox has officially begun repayments to creditors. Via a July 5 announcement, the rehabilitation trustee notified users that it has made "some" repayments in Bitcoin and Bitcoin Cash via exchanges in accordance with the rehabilitation plan.
As far as other details with respect to repayments are concerned, the trustee chalked out a few conditions including confirmation of account validity and creditors’ acceptance of the intent to subscribe to the Agency Receipt Agreement by designated crypto exchanges.
At this juncture, it should be noted that the repayments are not being made directly to BTC holders. The trustee will instead send funds to exchanges. They will, in turn, open customer access to the funds once Mt. Gox sends them.
Furthermore, discussions with respect to repayment procedures between the rehabilitation trustee and the exchanges must also be completed. Once these conditions are met, creditors will be “promptly” paid.
The trustee asserted,
“We ask eligible rehabilitation creditors to wait for a while.”
According to details from a Mt. Gox balance tracking bot, the aggregate BTC balance of all known addresses related to the trustee is around 94,457 BTC. It further pointed out that 47,228.7 BTC has been moved away from these addresses since funds were consolidated on 2024/05/30.
Tokyo-based Mt. Gox was launched in 2010. Within a couple of years, the exchange handled around 70% of all BTC transactions worldwide. Nevertheless, due to the lack of security protocols, hackers ended up breaching its network and stealing the crypto assets of over 24,000 customers.
They siphoned over 740,000 BTC belonging to customers, and 100,000 more belonging to the firm. The total amount was worth $460 million at the time.
The price of Bitcoin further fell on the news of the repayment initiation. At press time, it was priced at $54.3k, down by over 7% over the past day.
Last week, JP Morgan analysts cautioned users by stating that they expect Mt. Gox creditors to sell part of their BTC receivables. That, in turn, would add pressure to the market. That being said, the analysts noted that they expect a recovery from August.
