Mt. Gox Trustee Set to Initiate Repayment to Creditors After Massive 2014 Hack

By: Isha Das

Bankrupt Bitcoin exchange, Mt. Gox, appears set to make restitutions to its creditors nearly a decade after falling victim to a massive hack. The Trustee of the defunct exchange, Mr. Nobuaki Kobayashi, has reportedly begun informing claimants of imminent repayments via emails. According to the emails set to start in 2023.

In 2014, the website ceased operations, triggering a global market panic after losing 850,000 Bitcoin, which at current market rates, translates into over $31 billion.

Despite lodging for bankruptcy protection and initiating rehab processes for compensation since 2018, victims of the debacle have repeatedly encountered delays and uncertainty over getting their funds back, largely owing to legal disputes leading to frequent adjournments of the restitution plans. Notably, the final payback deadline was extended by 12 months in September, moving the timeline to October 31, 2024.

The once-popular exchange announced recently, through Mr. Kobayashi, the redemption of $47 million in trust assets, fueling social media speculations of the commencement of restitution processes.