Bitcoin Repayments To Mt. Gox Creditors Officially Begin

The Mt. Gox Rehabilitation Trustee, Nobuaki Kobayashi, announced today that the long-awaited repayments in Bitcoin (BTC) and Bitcoin Cash (BCH) to creditors of the defunct crypto exchange Mt. Gox has officially commenced. This marks a significant milestone in the crypto world, as the repayment process begins to unfold nearly a decade after the platform’s collapse and subsequent bankruptcy.

Mt. Gox’s Bitcoin Repayments Commence

In a detailed notice, Kobayashi stated, “On July 5, 2024, the Rehabilitation Trustee made repayments in Bitcoin and Bitcoin Cash to some of the rehabilitation creditors through a part of the Designated Cryptocurrency Exchanges etc. in accordance with the Rehabilitation Plan.” The notice further outlines that further repayments will proceed as various administrative and security checks are completed.

The distribution process, which involves significant coordination with designated exchanges, requires the verification of account validity and the acceptance of an Agency Receipt Agreement. Kobayashi urged creditors to be patient as these steps are essential to ensure that repayments are executed securely and efficiently.

Bitbank, Kraken, Bitstamp, SBI VC Trade, and Bitgo have been designated as the authorized exchanges to facilitate the repayments from Mt. Gox. These platforms are required to ensure that the funds are available to their customers, with a mandated period of availability extending up to 90 days from the time they receive the funds.

Mt. Gox Rehabilitation Trustee stated: “Repayments to other rehabilitation creditors will be promptly made once the following conditions have been met: (i) confirmation of the validity of registered accounts and other matters; (ii) acceptance of the intention to subscribe to the Agency Receipt Agreement by Designated Cryptocurrency Exchanges etc.; (iii) completion of discussions between the Rehabilitation Trustee and Designated Cryptocurrency Exchanges etc. regarding repayments; and (iv) confirmation that repayments can be made safely and securely.”

According to several user reports on Reddit, some creditors have already seen their accounts credited with BTC and BCH. One user shared an email excerpt from Mt. Gox stating: “Completion of BTC/BCH Repayment. On July 5, 2024, the Rehabilitation Trustee made a blockchain transfer of the BTC/BCH amount repayable to you […]. This transfer was made to [your exchange], which you designated as your Designated Cryptocurrency Exchange etc. on the MTGOX Online Rehabilitation Claim Filing System.”

The communication from Mt. Gox to its creditors also clarifies the operational details post-transfer: “Subsequently, [your exchange] will credit the repaid amount of BTC/BCH to your account balance (it may have already been credited). Please note, however, that [your exchange] may not be able to credit such an amount if your account becomes disabled or frozen in the future.”

BTC Market Impact

The repayment announcement has stirred the markets, contributing to a notable decrease in Bitcoin prices. Earlier in the day, Bitcoin’s price plummeted below $54,000. Notably, this decline coincided with the movement of 47,228 BTC by Mt. Gox, part of the repayment process, stirring fears of a potential sell-off in the market. The market’s nervous reaction led to the liquidation of over $212 million in bullish bets on the futures market.

At press time, BTC traded at $54,371.

Bitcoin price
BTC falls to $54,000 1-day chart | Source: BTCUSD on TradingView.com

Featured image created with DALL·E, chart from TradingView.com

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