Bitstamp begins Mt. Gox creditor repayments after decade-long wait
Bitstamp begins Mt. Gox creditor repayments after decade-long wait
Crypto exchange Bitstamp is set to start repaying Mt. Gox creditors on July 25, marking a significant moment for those affected by the exchange's collapse in 2014.
The long-awaited distributions come after the Mt. Gox trustees transferred a substantial amount of crypto assets, including 5,106 BTC directly to Bitstamp and 2,869 BTC to an unknown address, which eventually ended up in Bitstamp wallets. Additional assets like Bitcoin Cash and Ether were also received by Bitstamp.
As reported by Cointelegraph, the distribution process will take about a week for security checks before creditors can fully access their assets. However, UK-based Bitstamp clients will not be included in this initial round and can expect their repayments in the following months.
The timing of these repayments is particularly noteworthy given the dramatic rise in Bitcoin's value. Since Mt. Gox's collapse, Bitcoin's price has increased over 10,000%, potentially turning this long wait into a lucrative outcome for many creditors.
As Bitstamp noted, "Those affected by the 2014 hacking operation have spent a decade waiting to be reimbursed, but now, with a lengthy bankruptcy process concluded, many will realize considerable profits."
Kraken, another participant, announced on July 24 that it had also distributed the crypto assets received from Mt. Gox to its creditors. Kraken's CEO, Dave Ripley announced the end of the distribution in a July 24 post on X:
"Krakenfx has successfully distributed #Bitcoin and Bitcoin Cash from the Mt. Gox estate back to creditors. It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds."
Loading...
Originally, Mt. Gox had planned to start repayments in October 2023 but faced delays due to incomplete processes. The actual movement of assets began in May 2024, signaling the start of the repayment phase. Concerns that the sudden influx of recovered assets might negatively impact the market have so far proven unfounded, with polling indicating stable conditions.
Mt. Gox, once the world's largest Bitcoin exchange, operated from 2010 until its bankruptcy in 2014 following the loss of 850,000 BTC through a big theft. The ongoing repayment process is a crucial step towards resolving one of the cryptocurrency sector's most significant debacles.
The completion of these repayments is expected to restore some confidence among the crypto community and bring a sense of closure to the long-standing Mt. Gox saga.
See also: Potential 2024 Bitcoin Conference showdown: Kamala Harris and Donald Trump
