Defunct cryptocurrency exchange Mt. Gox has started payments to rehabilitation creditors as part of its rehabilitation plan. More than 10 years after its collapse, Mt Gox creditors are finally getting paid back.
According to a July 5 announcement, payments are being made in Bitcoin and Bitcoin Cash via centralized crypto exchanges designated to handle the transactions.
Rehabilitation creditors need to meet specific prerequisites to receive payments. These include confirming the validity of their accounts and agreeing to terms set by intermediary agencies.
Furthermore, the Rehabilitation Trustee and the designated cryptocurrency exchanges must finalize their discussions to align on the repayment process.
Several recipients confirmed the development on Reddit. One user confirmed receiving the expected amount on the exchange Bitbank.
“The BTC/BCC coins are already under my control,” the user wrote.
Another user shared an email from Mt. Gox, confirming their exchange had been credited via a Japan-based creditor. Mt. Gox Co., Ltd. was labeled as the Rehabilitation Debtor, with Nobuaki Kobayashi as the Rehabilitation Trustee.
According to some responses, only those who opted for cryptocurrency repayments at the time of claim filing are getting paid.
As of now, only BitBank and SBI, both Japanese exchanges, were confirmed by users to have received the repayments.
Mt. Gox, once a leading crypto exchange, filed for bankruptcy in 2014 due to a massive security breach, losing around 650,000 BTC from customers and 100,000 BTC of its own.
A compensation plan was approved by a court in 2021 and was supported by the majority of affected users.
This led to years of waiting before the exchange started paying out customers in December 2023.
The recent repayments come as Bitcoin dropped below $55,000 for the first time since February. With Mt. Gox moving over 47,000 Bitcoin, the transfers have been flagged as a key reason for the declining price pressure on the cryptocurrency.
