The trustee of the failed crypto exchange Mt. Gox has announced that repayments in Bitcoin and Bitcoin Cash will begin in early July 2024. This marks a significant step for creditors nearly a decade after Mt. Gox’s collapse.

Mt. Gox, once the world’s largest Bitcoin exchange, is set to repay creditors with 142,000 BTC, 143,000 BCH, and ¥69 billion (approximately $432 million). Nobuaki Kobayashi, the trustee, detailed in a recent notice that extensive preparations have been made to ensure secure and compliant transactions.

“We have taken time to ensure safe and reliable repayment to creditors, including technical remedies for safe repayments, compliance with financial regulations in each country, and discussion of repayment arrangements with the cryptocurrency exchanges.” – Nobuaki Kobayashi

The repayments will be carried out in the order of the crypto exchanges with which the Rehabilitation Trustee has completed the necessary exchange and confirmation procedures. However, it remains unclear how quickly these repayments will be processed and what immediate impact they will have on the crypto market.

Following the announcement, Bitcoin saw a decline of nearly 3%, trading at $62,440 according to recent data. This reaction showcases the market’s sensitivity to developments regarding Mt. Gox.

Founded in 2010, Mt. Gox quickly rose to prominence as the world’s largest Bitcoin exchange. However, in early 2014, the Tokyo-based platform abruptly stopped trading, shut down its website, and filed for bankruptcy protection. The exchange revealed it had lost approximately 850,000 BTC, worth around $450 million at that time. Investigations later disclosed that most of these Bitcoins were stolen over several years, starting as early as late 2011, from the exchange’s hot wallets.

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