Mt Gox Begins Creditor Repayments in Bitcoin and Bitcoin Cash

The rehabilitation trustee of Mt. Gox, the defunct cryptocurrency exchange, announced on Friday that it has initiated repayments to some creditors in Bitcoin (BTC) and Bitcoin Cash (BCH). These repayments are being processed through select cryptocurrency exchanges as outlined in the rehabilitation plan.

According to a recent announcement released by the trustee, eligible creditors can expect prompt repayments if they meet certain criteria. Those include verification of registered account validity, agreement to terms set by designated crypto exchanges, and completion of necessary discussions with the trustee. The trustee has asked eligible rehabilitation creditors to remain patient during this process.

This announcement follows a significant movement of funds earlier today, where Mt Gox transferred 47,228.7 BTC (approximately $2.71 billion) to a wallet. Subsequently, these assets were distributed in multiple transactions, including a transfer of 1,545 BTC ($85 million) to a hot wallet on the Bitbank exchange.

The cryptocurrency market reacted strongly to these developments. Bitcoin’s price dropped below $54,000 at one point, and is currently trading at $54,363, representing a 7.6% decline over the past 24 hours. The wider crypto market experienced substantial liquidations, with over $665 million wiped out across centralized exchanges in the last day, according to Coinglass data.

What is Mt. Gox?

Mt. Gox was once the world’s largest Bitcoin exchange, handling over 70% of all Bitcoin transactions globally at its peak. Founded in 2010 by Jed McCaleb and later sold to Mark Karpelès, the Tokyo-based exchange played a crucial role in the early days of cryptocurrency trading.

However, Mt. Gox became infamous in February 2014 when it suddenly suspended trading, closed its website, and filed for bankruptcy protection. The company announced that it had lost approximately 850,000 BTC belonging to customers and the company, valued at more than $450 million at the time. This event was one of the most significant setbacks in Bitcoin’s history, shaking investor confidence and highlighting the need for better security measures in the crypto industry.

Since its collapse, Mt. Gox has been undergoing a lengthy bankruptcy process, working to compensate its creditors. The recent news about repayments marks a significant milestone in this ongoing saga, potentially bringing some closure to affected users after nearly a decade.