Mt. Gox Creditors Receive Stolen Crypto Funds Decade Years After Bankruptcy

YEREVAN (CoinChapter.com) — Nearly ten years after the cryptocurrency exchange Mt. Gox became defuncted, creditors have started receiving payments for their trapped Bitcoin (BTC). According to reports on social media websites, creditors have begun releasing the payments in fiat currency, sending much excitement to the community. 

In particular, users on Reddit were thrilled to report that their Christmas was made extra special through unexpected deposits in their Reddit wallet.

“Merry freaking Christmas lol my PayPal sock has some goodies from Santa Gox. Soooooooo keep it in PayPal eh ?,” 

one user wrote. 

Bankrupt exchange’s trustees make double payments

While the excitement was visible among the community, some reported that the creditors had made a mistake. While crediting the victims, they had sent double payments to those with two PayPal accounts. 

“I got two PayPal emails and I checked my PayPal account and I have indeed received two identical payments giving me double what I expected. Just a lucky error in my favor?,” 

another Mt. Gox creditor said. 

While many of them reported the same, others were worried that this mistake would negatively impact the refunds. As one user pointed out, the trustees could pause the operation to rectify the error. 

Meanwhile, others pointed out that this is not the only refund they will get from Mt. Gox. The current compensations were only the ones that had fiat stuck at the exchange. Users expect Mt. Gox to return their trapped Bitcoin (BTC).

However, the current refunds came as a surprise to those who had lost hope. Some reported that upon receiving the email, they mistook it for a phishing attempt. 

What is Mt. Gox, and why are people getting money? 

Mt. Gox was a Japan-based crypto exchange that entered the scene after Jed McCaleb created its initial website. It functioned for around four years, between 2010-2014. It became the biggest exchange at the time, accounting for 70%-80% of all Bitcoin transactions. 

In early 2014, Mt. Gox filed for bankruptcy after suffering a hack that allegedly drained nearly half a billion dollars in crypto from the exchange. 

With user funds trapped, it continued to be the subject of lawsuits and speculation for nearly a decade.

Last month, Mt. Gox creditors received an email from the Mt. Gox trustees informing them that repayments would start in 2023 and continue through 2024. 

While the email was met with skepticism, the recent development has given hope. Not only those who suffered, thanks to Mt. Gox but also other exchanges. Perhaps the victims of Sam Bankman-Fried’s FTX should not lose hope.