Mt. Gox, the cryptocurrency exchange that suffered a major hack, is making significant strides toward reimbursing its creditors in Bitcoin (BTC) and Bitcoin Cash (BCH).
The crypto exchange's trustee has been actively contacting creditors to verify their identities and confirm account details necessary for repayment.
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A post on Mt. Gox's insolvency forum on Reddit, dated January 22nd, indicated that the crypto exchange mentioned in the creditor's claim has verified account ownership with the trustee. The email also cautioned recipients about potential issues in receiving BTC/BCH if their accounts become disabled or frozen in the future.
Numerous Bitstamp users have confirmed receiving these emails, while a smaller number of Kraken users have reported similar confirmations. However, the majority of Kraken users are yet to receive such emails.
Some crypto exchanges involved in the Mt. Gox repayment process have assured their customers that they will continue to service Mt. Gox-related accounts, even in jurisdictions they are exiting.
For instance, Bitstamp, which ceased its operations in Canada on January 4th, 2024, has committed to keeping local accounts open until the complete refund of Mt. Gox funds. However, these accounts will be limited to withdrawal functions, with other services like deposits and trading being discontinued.
The trustee's initiative to verify accounts for BTC and BCH repayments follows the commencement of bank account repayments. The first reports of Mt. Gox creditors receiving payments emerged in late December 2023, with some cases of double payments reported.
Mt. Gox, established in 2010, was a leading Bitcoin exchange, handling approximately 70% of all BTC transactions before its collapse. The crypto exchange lost 850,000 BTC in a 2014 security breach, marking one of the most significant bankruptcies in the crypto world. Mt. Gox is slated to repay its creditors with 142,000 Bitcoin, 143,000 Bitcoin Cash, and 69 billion Japanese yen (about $510 million) by October 2024.
Mt. Gox is advancing in its commitment to repay creditors, with recent steps including verifying creditor identities and confirming account details for Bitcoin and Bitcoin Cash repayments.
