Bankrupt exchange Mt.Gox begins preparations to reimburse creditors

The platform’s customers can receive part of their compensation in the form of bitcoins or Bitcoin Cash

08.07.2022 - 10:45

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What’s new? Bitcoin exchange Mt.Gox, which filed for bankruptcy in 2014, has released new information about its repayment procedure for customers. Trustee Nobuaki Kobayashi reported that the company has begun preparations to make repayments. Creditors have until the end of August to send in applications and indicate how they want to receive the funds: in a format of multiple payments or an early lump sum. Also, part of the assets may be paid in BTC or BCH. A start date for the payments has not yet been announced.

Mt.Gox’s announcement

Mt.Gox situation. The crypto exchange declared bankruptcy after a hacker attack that caused users to lose 744 000 BTC. In 2018, a civil rehabilitation process began.

In 2020, Kobayashi presented a plan to refund creditors. At the time, the Mt.Gox wallet held 137 891 BTC (about $3 billion at the Binance rate on July 8, 2022), which was planned to be used for repayments. Some members of the community repeatedly raised concerns that the start of the payments would put heavy pressure on the bitcoin rate.

In early July, cryptocurrency hedge fund Three Arrows Capital (3AC) filed for bankruptcy in the United States. The filing form prevents creditors from seizing the fund’s assets in the States until liquidation proceedings are completed in the British Virgin Islands. The liquidation was ordered by the court on June 29 as part of 3AC’s insolvency case.

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