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 have officially begun. This marks a major milestone in the crypto world, as refund process begins to unfold nearly a decade after the platform’s collapse and subsequent bankruptcy.
Mt. Gox Bitcoin Refunds Begin
In detail noticeKobayashi stated, “On July 5, 2024, the Rehabilitation Trustee made repayments in Bitcoin and Bitcoin Cash to some of the Rehabilitation Creditors through a portion of the designated cryptocurrency exchanges, etc., in accordance with the Rehabilitation Plan.” The notice further states that further repayments will continue as various administrative and security checks are completed.
The distribution process, which involves significant coordination with designated exchanges, requires verifying account validity and agreeing to an agency receiving agreement. Kobayashi urged creditors to be patient, as these steps are essential to ensuring that repayments are executed safely and efficiently.
Bitbank, Kraken, Bitstamp, SBI VC Trade, and Bitgo have been named as the exchanges authorized to facilitate Mt. Gox’s refunds. These platforms are required to ensure that the funds are available to their customers, with a mandatory availability period extending up to 90 days from the receipt of the funds.
The Mt. Gox Rehabilitation Trustee stated: “Reimbursements to other rehabilitation creditors will be made promptly 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’s Reception Agreement by the designated cryptocurrency exchanges, etc.; (iii) completion of discussions between the Rehabilitation Trustee and the designated cryptocurrency exchanges, etc. regarding the reimbursements; and (iv) confirmation that the reimbursements can be made safely.”
According to several users reports On Reddit, some creditors have already seen their accounts credited with BTC and BCH. One user shared an excerpt from an email 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 that was repayable to you (…). This transfer was made to (your exchange), which you designated as your designated cryptocurrency exchange, etc. on the MTGOX online rehabilitation filing system.”
Mt. Gox’s communication to its creditors also clarifies operational details after the transfer: “Thereafter, (your exchange) will credit the refunded 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 is deactivated or frozen in the future.”
Impact of Bitcoin Market
The refund announcement has stirred markets, contributing to a notable drop in Bitcoin prices. Earlier today, Bitcoin prices dropped below $54,000. Notably, this drop coincided with the movement of 47,228 BTC from Mt. Gox, part of the refund process, stirring fears of a possible massive sell-off on the market. The market is nervous reaction led to the liquidation of more than $212 million in bullish bets in the futures market.
At press time, BTC was trading at $54,371.
Featured image created with DALL·E, chart by TradingView.com
