Mt. Gox begins repaying creditors, but some report receiving double payouts News โธ Asia โธ Bitcoin โธ Bankruptcy
Mt. Gox begins repaying creditors, but some report receiving double payouts
Creditors of the bankrupt Mt. Gox are reporting first payments from the firm nearly a decade after its collapse.
2 min read
Updated: Dec. 26, 2023 at 11:51 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bankrupt crypto exchange Mt. Gox has reportedly begun repaying creditors after about a decade since it collapsed.
Several creditors of the failed firm revealed that they received fiat equivalents of their assets previously locked on the now-defunct exchange.
The initial payment confirmation was shared on the social media platform X (formerly Twitter) on Dec. 21, where a user reported receiving payment through a bank transfer in Japanese yen.
Since then, numerous similar posts have surfaced on X and the Reddit subchannel r/mtgoxinsolvency, indicating that Mt. Gox has been making repayments in Japanese yen to users via PayPal.
A Reddit user, Free-End2543, shared an email reportedly from PayPal containing the Mt. Gox payment receipt. Despite initial skepticism, the user confirmed the receipt of funds in their PayPal account.
However, indications on social media imply that the repayments are restricted to creditors who opted for a cash redemption, with no confirmed reports of crypto repayments presently.
Kamikaz Fiat, one of the most notable names on Crypto Twitter, claimed that some Mt Gox creditors got paid twice today. He added:
“These are the first cash payments in 10 years and on day one the trustee has f*cked up and made incorrect payments.”
Several Mt. Gox creditors on the Reddit subchannel r/mtgoxinsolvency also confirmed receiving double payments.
Mt. Goxโs rehabilitation trustee has yet to respond to CryptoSlate’s request for comment as of press time.
Last month, the exchange revealed plans to start repaying the firmโs creditors in cash during the 2023 calendar year and continue the process into next year due to the large number of creditors.
Mt. Gox, once among the largest cryptocurrency exchanges, encountered significant issues following a 2011 hack before collapsing in 2014. Its collapse affected approximately 24,000 customers, resulting in losses of around 850,000 BTC, valued at more than $31 billion based on the current price of the flagship digital asset.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Mt. Gox
Mt Gox was a bitcoin exchange based in Shibuya, Tokyo, Japan that was launched in July 2010.
PayPal
PayPal is an American multinational financial technology firm that operates an online payment system in most countries that permits online money transfers and serves as an electronic replacement for conventional paper methods like checks and money orders.