Creditors of the defunct Bitcoin exchange Mt. Gox have begun receiving fiat repayments, marking a notable development almost ten years since the exchange’s collapse in February 2014. Evidence of this progress has surfaced on Reddit, a social media platform, specifically within the r/mtgoxinsolvency page, where several users are actively sharing their experiences and confirming the receipt of their repayments.
One Reddit user, Free-end254, expressed their surprise and relief by posting, “I just got paid,” and attached a screenshot of an email containing a PayPal receipt of payment. Another user shared a similar experience, stating that they have also received a payment. The user noted that they initially mistook the email for a phishing attempt, only to discover that it was a legitimate payment into their PayPal account. At the time of writing, several other users also reported having received the payment.
Further detailing the repayment process, a user shared that they received only a portion of their 0.125 Bitcoin claim, amounting to 30,283 yen — approximately $200 at the current exchange rate. They noted the remaining amount they are owed is around $748, suggesting that the repayment process might be rolling out partially. However, it must be noted that there has been no official announcement from Mt. Gox regarding the rolling of payments.
The repayment process is a complex undertaking managed by Nobuaki Kobayashi, the Rehabilitation Trustee appointed to oversee the distribution of assets. According to recent communications from Kobayashi, the plan involves multiple tranches, including base repayment, early lump-sum repayment, and intermediate repayment. The communication suggested that the initial repayments have commenced, with further distributions expected to continue into 2024. However, specific details regarding the timing and amount of individual creditor repayments remain largely undefined.
The Mt. Gox estate holds substantial assets, including Bitcoin and Bitcoin Cash, which are part of the repayment strategy. The plan, as laid out, aims to address the claims of each creditor, with the first portion of the claims to be paid in yen. For claims exceeding a certain amount, the repayment will be split between cryptocurrency and fiat, reflecting the diverse preferences and needs of the creditors.
The unfolding of these repayments is a critical development for the thousands of users affected by the Mt. Gox collapse. At its peak, Mt. Gox was the world’s leading Bitcoin exchange, handling over 70% of all Bitcoin transactions. The sudden halt of trading on the Mt. Gox platform in early 2014, which led to its subsequent declaration of bankruptcy, was triggered by a significant security breach. This breach resulted in the loss of approximately 850,000 bitcoins.
