The infamous hack of the Mt. Gox cryptocurrency exchange in 2014 saw it lose 850,000 Bitcoin (BTC) overnight.
The situation surrounding the payment of creditors of the defunct cryptocurrency exchange Mt. Gox has reached another chapter. This follows the just-concluded registration exercise, in which customers who lost funds in the notorious Mt. Gox hack were asked to submit their payment information.
In his most recent statement, the exchange has confirmed that the registration time has passed. However, it also clarified how it intends to meet payments to creditors.
An April 7 statement from rehabilitation trustee Nobuaki Kobayashi suggests the repayments will come in three parts. They are “base repayment, intermediate repayment and flat rate early repayment”. Kobayashi further added that the payments will continue until October 31, 2023. However, he also says that there is a possibility that the date could be extended if approved by the Tokyo District Court.
Despite the statement, the exact time Mt. Gox will begin refunds remains unclear. However, Kobayashi has hinted that some “necessary preparations” are needed, such as confirming the picks for payment before anything else. This will help make the entire checkout process as seamless as possible, the note suggests.
Mt. Gox Hack: Unforgettable in Crypto History
The infamous hack of the Mt. Gox cryptocurrency exchange in 2014 saw it lose 850,000 Bitcoin (BTC) overnight. From there, things were never quite the same for the exchange, forcing it to shut down entirely some months later. To date, the hack remains the largest crypto-based heist whose shockwave seeped deeper than that of the FTX exchange crash in 2022.
And now, nearly a decade later, some first-hand victims of the hack have still not seen any compensation. It’s been one delay after another. This despite the fact that a Japanese court has approved a compensation plan for victims since 2018.
In all, Mt. Gox has to pay about $16 billion in compensation to creditors. And some, like its largest creditor, the Mt. Gox Investment Fund, have opted for an advance payment in BTC for less than what is owed. This is so they don’t have to wait any longer to redeem their full claims.
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Mayowa is a crypto enthusiast/writer whose conversational nature is quite evident in his writing style. He strongly believes in the potential of digital assets and takes every opportunity to reiterate it. He is a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from cryptocurrency, however, Mayowa’s imagined distractions include soccer or discussions of world politics.
