YEREVAN (CoinChapter.com) — Several creditors of the infamously bankrupt crypto exchange Mt. Gox received an email from the bankruptcy trustee stating that the latter will start repaying them in cash in 2023 and continue into 2024.
The letter stated Mt. Gox would distribute 142,000 Bitcoin (BTC), 143,000 Bitcoin Cash (BCH), and 69 billion Japanese Yen, among others. China-based crypto reporter Colin Wu shared an excerpt from the letter on Nov. 22.
The letter also stated that no action is required from the creditors and that they can expect payment before 2024.
Not First Payment Delay
Nobuaki Kobayashi, the bankruptcy trustee of Mt. Gox, has indicated that repayments to creditors are “imminent.” However, the former exchange clients might not be quick to trust him, as the lengthy legal battles started nearly a decade ago, in 2014.
The latest development pins the repayment process to commence within the 2023 calendar year, with plans to distribute repayments in cash. However, while the repayment process will begin “shortly,” it may take some time to complete fully.
Mt. Gox plans to distribute approximately $5.6 billion to its creditors as part of its rehabilitation efforts. However, the company has postponed the repayment deadline multiple times.
As the Mt. Gox controversy unfolded nearly a decade ago, a small recap is in order.
What Happened with Mt. Gox Crypto Exchange
The exchange launched in 2010 in Tokyo, Japan. By 2014, it handled over 70% of all Bitcoin transactions worldwide.
However, MT. Gox abruptly ceased operations amid revelations of its involvement in the loss/theft of 850,000 BTC. Notably, the BTC/USD exchange rate stood at approximately $800 at the time, but after the scandal slumped to $200 by the end of 2014.
In February 2014, Mt. Gox suspended trading, closed its website and exchange service, and filed for bankruptcy protection from creditors, starting liquidation proceedings in April. The 850,000 Bitcoins in question have since been “found,” but the reasons for the initial disappearance were allegedly theft, fraud, mismanagement, or a combination of these.
As a result, investors have not seen their funds since the bankruptcy. Nevertheless, the civil rehabilitation trial surrounding the exchange has ended.
Will Mt. Gox repay creditors by 2024? It’s not quite clear. However, judging by the nearly decade-long wait, former exchange clients might see another delay.
