“Cash repayments will begin within 2023”

Mt Gox, a cryptocurrency exchange that went bankrupt in 2014, is making progress in repaying the cash portion to creditors.

On the social media platform Reddit, reports are pouring in that Mt. Gox’s creditors have been repaid in legal tender. In particular, in the category “r/mtgoxinsolvency,” there has been an increase in posts about debt repayments made in yen through PayPal accounts.

One Reddit user, Free-end254, posted a screenshot of an email containing a PayPal payment receipt saying, “I received funds from Mt. Gox.” Although he was suspicious at first, he says the funds were actually deposited into his PayPal account.

This information was reportedly first made public by an anonymous X user on December 21, 2021. This X user revealed that the debt was repaid in Japanese yen via bank transfer.

However, according to current information on social networks, it appears that “Mount Gox debt repayment” is limited to creditors who choose cash redemption.

Other repayment methods include “early lump sum repayment (70% Bitcoin, 30% cash)” or repayment in “virtual currency” which is said to have a term of about 5 years.

Mt Gox’s rehabilitation trustee sent an email to creditors on November 21, 2021, stating, “We are working to begin cash repayments within 2023.” However, given the large number of creditors, repayments are likely to continue until 2024.

The original deadline for repayment was October 31, 2023, but it was extended by one year because confirmation of creditor information and coordination with related banks and businesses were more difficult than expected.

connection:Mt. Gox to begin paying cash to creditors soon

What is Mount Gox?

Mt.Gox was one of the world’s largest cryptocurrency exchanges, operating from Tokyo from 2010 to 2014. Approximately 127,000 users were affected by the cryptocurrency leak in 2011 and the company’s bankruptcy in 2014, losing 850,000 Bitcoins, equivalent to approximately $460 million (approximately 52.6 billion yen) at the time. has been done.

The Rehabilitation Trustee stated that in 2019, Mt.Gox held 141,686 BTC (equivalent to approximately 860 billion yen at the current rate) and 142,846 BCH (equivalent to 4.8 billion yen) in Bitcoin Cash (BCH). It was reported that

Currently, Mt.Gox’s repayment process to its creditors is proceeding based on the rehabilitation plan finalized by the Tokyo District Court on November 16, 2021. Mt. Gox’s movements are seen as a source of selling pressure for Bitcoin (BTC), and are attracting attention from some cryptocurrency investors.

connection:Mt Gox repayment deadline extended by one year until end of October 2024

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