Mt. Gox Rehabilitation Administrator Nobuaki Kobayashi announced today that the long-awaited repayments in bitcoin (btc) and bitcoin Cash (BCH) to creditors of the defunct cryptocurrency exchange Mt. Gox have officially begun. This marks a major milestone in the cryptocurrency world as the repayment process begins to unfold nearly a decade after the platform’s collapse and subsequent bankruptcy.
Mt. Gox bitcoin Refunds Begin
In detail warningKobayashi stated: “On July 5, 2024, the rehabilitation trustee made refunds in bitcoin and bitcoin Cash to some of the rehabilitation creditors through a portion of the designated cryptocurrency exchanges, etc., in accordance with the rehabilitation plan.” The notice also states that further refunds will be made as various administrative and security checks are completed.
The distribution process, which involves significant coordination with designated exchanges, requires verification of account validity and acceptance of an Agency Receipt Agreement. Kobayashi urged creditors to be patient, as these steps are essential to ensure that repayments are executed safely and efficiently.
Bitbank, Kraken, Bitstamp, SBI VC Trade, and Bitgo have been designated as the authorized exchanges to facilitate Mt. Gox refunds. These platforms must ensure that the funds are available to their customers, with a mandatory availability period extending up to 90 days from the time they receive the funds.
The Mt. Gox rehabilitation trustee stated: “Repayments to other rehabilitation creditors will be made immediately once the following conditions are met: (i) confirmation of the validity of the registered accounts and other matters; (ii) acceptance of the intention to enter into the Agency Reception Agreement by the Designated Cryptocurrency Exchanges, etc.; (iii) completion of discussions between the rehabilitation trustee and the Designated Cryptocurrency Exchanges, etc. regarding the refunds; and (iv) confirmation that the refunds can be made safely.”
According to several users reports On Reddit, some creditors have already seen their accounts credited with btc and BCH. One user shared an email excerpt from Mt. Gox that read: “Completion of btc/BCH repayment. On July 5th, 2024, the Rehabilitation Trustee made a blockchain transfer of the btc/BCH amount due to be repaid to you (…). This transfer was made to (your exchange), which you designated as your designated cryptocurrency exchange, etc. in the MTGOX online rehabilitation claim submission system.”
Mt. Gox’s communication to its creditors also clarifies the operational details following the transfer: “Subsequently, (your exchange) will credit the refunded amount of btc/BCH to your account balance (it may have already been credited). However, please note that (your exchange) may not be able to credit such amount if your account is deactivated or frozen in the future.”
Impact of btc market
The refund announcement has sent markets into turmoil, contributing to a notable decline in bitcoin prices. Earlier in the day, the bitcoin price plummeted below $54,000. Notably, this drop coincided with the movement of 47,228 btc by Mt. Gox, part of the refund process, sparking fears of a potential sell-off in the market. The market is nervous bitcoin/bitcoin-price-crashes-below-54000-top-5-reasons/” target=”_blank” rel=”noopener nofollow”>reaction led to the liquidation of more than $212 million in bullish bets in the futures market.
At the time of writing, btc was trading at $54,371.
Featured image created with DALL·E, chart from TradingView.com
