Mt. Gox Payouts Still Pending After 10 Years: What Has Taken So Long?
Mt. Gox creditors have been waiting a decade to recover funds they held on the platfrom. Photo by Robert Alexander/Getty Images.
Key Takeaways
- February 25 will mark the 10th anniversary of Mt. Gox’s bankruptcy.
- A decade after the cryptocurrency exchange suspended withdrawals, users are still awaiting repayment.
- For creditors who opted to receive reimbursement in crypto, payments are scheduled to take place in October.
The beginning of February will mark 10 years since the cryptocurrency exchange Mt. Gox suspended withdrawals , leaving platform users unable to access their funds.
Finally, after a decade of drawn-out bankruptcy proceedings, on Monday, January 22, the firm told users awaiting repayment that it was ready to disburse Bitcoin and Bitcoin Cash that has been locked up for a decade. But what exactly took so long?
Creditors Frustrated by Repeated Delays
Over the years, administrators of Mt. Gox’s estate have postponed plans to reimburse out-of-pocket customers multiple times
With various groups of creditors divided over the best way to handle repayments, the estate’s trustees repeatedly overhauled Mt. Gox’s bankruptcy plan.
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After years of legal wrangling, which was only complicated by Mt. Gox founder Mark Karpelès‘ fraud trial, repayments were initially scheduled for March 2023. However, the deadline was postponed until September to give users more time to complete their applications.
Just as the long-awaited date was within reach, the estate then pushed the deadline back by yet another year, blaming delays in collecting the necessary information from creditors.
How Will Mt. Gox Users Be Repaid?
Early on, Mt’ Gox’s bankruptcy administrators made the decision not to liquidate the exchange’s crypto assets. As such, creditors will receive a mixture of Bitcoin, Bitcoin Cash, and Japanese Yen, depending on their personal preferences and what assets they held on the platform.
Users who opted to receive fiat reimbursements reported that they had received the first JPY payments In December.
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Meanwhile, the latest email, which has been circulated on social media, suggests that everything is on track for cryptocurrency disbursements to take place on October 31. However, a discussion on the r/mtgoxinsolvency subreddit reveals that not all users received the email at the same time. As of Monday, many were still awaiting confirmation that their funds were ready to be sent out.
Crypto repayments will be drawn from wallets controlled by the estate’s trustees, which reportedly hold a stash of around 142,000 BTC and 143,000 BCH. In order to receive their reimbursement, users were required to create a dedicated Bitstamp of Kraken account.
