Reports are surfacing that the creditors of the now-defunct cryptocurrency exchange, Mt. Gox, have started to see payments of their claims, a decade after the platform was declared insolvent. Several online forums, including Reddit, have been flooded with posts and comments by creditors who opted for PayPal as their preferred payment method, stating they have begun receiving their Bitcoin (BTC) and Bitcoin Cash (BCH) balances in Japanese Yen (JPY).
The Tale of Mt. Gox Creditors’ Payments
One Mt. Gox creditor, Mat Phillips, took to the Mt. Gox insolvency subreddit to share his experience. He disclosed that he received a payment of 30,283 JPY (approximately $212) in his PayPal account against a claim of 0.125 in BTC and BCH. Phillips, who is expected to receive a total of 106,502 JPY ($747) according to his claim form, raised questions about whether additional payments would be forthcoming. Other creditors echoed his sentiments, wondering when they would receive the full amount of their claims.
Interestingly, a few users reported receiving double payments and questioned whether the Mt. Gox rehabilitation trustee would address this anomaly. “I think I got paid twice? I received two transactions, each of which seems equal to the total of the BTC/BCH Non-allotment (JPY) amounts. So… Merry… Christmas…?” one creditor commented.
Payment Schedule and Expectations
The unexpected Mt. Gox payments were a welcome surprise for creditors who had almost given up hope of seeing their claims fulfilled after such a long period. The trustee overseeing the Mt. Gox case has repeatedly extended the repayment deadline, with the latest date set for October 31, 2024. Some members of the community have proposed that creditors who filed their claims correctly and on time should be fully compensated by the end of 2023, but this is by no means a guarantee.
The Downfall of Mt. Gox
Mt. Gox, once responsible for approximately 70% of all Bitcoin transactions, fell into disarray in 2011 following a hack that resulted in the loss of 25,000 BTC. The platform’s woes were compounded by a second, more devastating hack in 2014, which saw an additional 750,000 BTC stolen. These incidents precipitated the platform’s demise and left approximately 24,000 creditors in the lurch. Despite these setbacks, the defunct company still holds 142,000 BTC, 143,000 BCH, and 69 billion JPY in assets.
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