Users on Reddit reported that collapsed Bitcoin exchange MtGox has begun the process of compensating its creditors.
MtGox Started Compensation Process for Creditors
The exchange recently sent emails to its users to confirm ownership of exchange address accounts that were previously entered as payment addresses for Bitcoin (BTC) and Bitcoin Cash (BCH).
In December 2023, creditors reported receiving compensation in Japanese yen in their PayPal accounts.
The redemption process could continue throughout 2024, and MtGox could distribute 142,000 BTC, 143,000 BCH, and 69 billion Yen in assets to its users, among other assets.
This significant distribution represents one of the largest paybacks in the history of cryptocurrency exchange failures.
The start of the repayment process marks an important step towards resolution for MtGox creditors, many of whom have been waiting to recoup their losses for almost a decade. The completion of this process will bring an end to a turbulent chapter in the history of cryptocurrency exchanges.
As the crypto industry continues to mature and regulatory oversight increases, the lessons learned from the MtGox bankruptcy serve as a sharp reminder of the importance of exchange security and protection of user assets.
The MtGox refund process is closely followed by the global crypto community.
What is the Mt.Gox Incident?
Japanese Cryptocurrency Exchange Mt.Gox, which requested bankruptcy after hackers stole 850 thousand Bitcoins in 2014, could not pay the money of many investors after announcing its bankruptcy.
As a result of the lawsuits that lasted for about 8 years, it was determined that there was a wallet belonging to the bankrupt exchange, with 200,000 Bitcoins forgotten in it.
The liquidation commission appointed by the Tokyo District Court ordered Mt.Gox to distribute from its forgotten wallet to creditors who lost all their assets in the stock market.
With the finalization of the payment plan, the Japanese cryptocurrency exchange Mt., which went bankrupt in 2014 and caused many investors to suffer. Gox's plan to distribute 142,000 Bitcoins has reached its final stage.
Since the distribution is not all at once and spread over time, it is not expected to create a serious sales pressure in the market.
*This is not investment advice.
