Mt. Gox Creditors Report Receiving Compensation Payments via PayPal in Japanese Yen

Last updated: December 26, 2023 01:25 EST . 2 min read

Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilise affiliate links within our content, and receive commission.Source: AdobeStock / 24K-ProductionCreditors of now-defunct crypto exchange Mt. Gox have reported receiving fiat repayments for their trapped Bitcoin on the social media platform Reddit

According to recent posts on the Reddit page r/mtgoxinsolvency, Mt. Gox has begun sending Japanese Yen-denominated refunds to users through PayPal

While these reports are yet to be confirmed, several Reddit users have claimed to have received payments.

The repayments come as the funds had been locked on the exchange since February 2014,

One Reddit user, Free-end254, shared a screenshot of an email containing a PayPal receipt, stating, “I just got paid.”

Another user expressed initial skepticism, believing the email to be a phishing scam, but later confirmed that the payment had indeed arrived in their PayPal account.

Mt. Gox Repayments Started in December 21

The first instance of these new Mt. Gox repayments was reported on December 21 when a pseudonymous Japanese user on X (formerly Twitter) announced that they had received their Mt. Gox claims via a bank transfer credited in Japanese Yen.

This development comes just a month after Nobuaki Kobayashi, the trustee overseeing the Mt. Gox Bitcoin exchange’s estate, began sending emails to rehabilitation creditors regarding the commencement of repayments on November 21.

In his email, Kobayashi informed creditors that the first repayments in cash would begin in 2023, with the expectation of continuing the process in 2024.

However, he did not provide specific timing details for individual rehabilitation creditors.

The repayment process marks a significant step forward for Mt. Gox creditors who have been waiting for nearly a decade to recover their funds

The exchange’s collapse in 2014 resulted in the loss of approximately 850,000 Bitcoin, making it one of the largest hacks in cryptocurrency history.

While the recent reports indicate progress in compensating affected users, it remains to be seen how smoothly the repayment process will unfold and how long it will take for all creditors to be reimbursed fully

The Infamous Hack of Mt. Gox

The collapse of Mt. Gox in 2014 after a hack resulted in the loss of approximately 650,000 to 850,000 Bitcoins, some belonging to the exchange and others to creditors

The missing cryptocurrency was valued in the hundreds of millions, leading Mt. Gox to file for bankruptcy protection in Japan.

For years, creditors have awaited compensation through a complex legal battle Mt. Gox ultimately located only around 200,000 of the lost Bitcoins

Now, with the rehabilitation plan in place, creditors can hope to finally obtain some repayment, although specifics are still uncertain.

Creditors have been told that they will not receive full reimbursements, but the trustee recently stated that “approximately 99%” of those waiting for their funds have voted in favor of a deal that will see them repaid around 90% of their funds.