Mt. Gox Continues Repayment, Confirms Users Bitcoin Account Ownership

The long-ongoing saga of Mt. Gox, once the largest Bitcoin exchange globally, shows signs of resolution as the trustee progresses toward repaying creditors. 

Founded in 2010, Mt. Gox is on the path to repay creditors substantially, including 142,000 Bitcoin, 143,000 Bitcoin Cash, and 69 billion Japanese yen ($510 million) by October 2024.

Recent reports reveal that Mt. Gox creditors are receiving emails confirming the completion of identity verification for crypto exchange accounts designated for Bitcoin and Bitcoin Cash repayments. 

The verification process is crucial, allowing users to subscribe to the agency receipt for repayment in BTC/BCH.

One of the emails, shared on Reddit’s Mt. Gox insolvency hub, discloses that a crypto exchange linked to the user’s rehabilitation claim has successfully verified account ownership with the trustee. 

This confirmation opens the door for users to receive repayments in Bitcoin and Bitcoin Cash, marking a significant development in the aftermath of the massive security breach in 2014 that led to Mt. Gox’s downfall.

“In the future, it is anticipated that the exchange rule accepts your subscription of agency receipts indicated on the system to receive payment in BTC/BCH as your agent. Thereafter an agency agreement will be entered into between you and the exchange. We will notify you by email when this agreement has been entered into.” 

Selected Exchanges and Repayment Challenges

While offering hope for repayments, the email comes with a cautionary note. It warns that accounts that are disabled or frozen may not be eligible for repayment in BTC/BCH. 

Numerous Reddit users have reported receiving these emails, with Bitstamp and Kraken being the primary exchanges mentioned in users’ selections for agency receipts.

Despite exiting certain jurisdictions, some exchanges, including Bitstamp, have expressed their commitment to servicing Mt. Gox-related customers until full refunds are completed, albeit with limited functionality. 

The development follows the initiation of bank account repayments by the Mt. Gox trustee in December 2023, a process that encountered a hiccup with some creditors receiving double payments.

Timeline and Extended Deadline

The Mt. Gox saga, originating from a massive security breach in 2014 resulting in the loss of 850,000 BTC, has been a prolonged ordeal for investors. Initially controlling about 70% of mined Bitcoin, Mt. Gox’s collapse wiped off billions in assets, leading to widespread investigations and charges against the exchange’s former CEO.

Hope resurfaced when reports emerged that some customers started receiving payments in 2023. 

Related: Mt. Gox Creditors Celebrate as Settlement Payouts Begin

However, the process encountered challenges, with some users receiving double payments in error, prompting a request for returns. 

The rehabilitation trustee, Nobuaki Kobayashi, extended the payment deadline from October 31, 2023, to October 31, 2024, citing the complexities of handling many rehabilitation creditors and different types of repayments.

“Due to the large number of rehabilitation creditors who will receive repayment, the varying types of repayments, the different preparation and processing times required to make the repayment, repayments will continue into 2024.” 

The confirmation emails from the Mt. Gox trustee, the ongoing bank repayments, and the extended deadline signify a crucial phase in resolving one of history’s most significant crypto bankruptcies.

Related: Court Approves Celsius Network’s Bankruptcy Exit, Transition to Bitcoin Miner