Mt. Gox: refunds in Bitcoin (BTC) and Bitcoin Cash (BCH) are ready

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At a crucial moment for the rehabilitation of the infamous Mt. Gox, the trustee is diligently confirming the Bitcoin and Bitcoin Cash addresses of the creditors for the upcoming refunds, marking a significant step in the aftermath of the 2014 security breach. 

As the cryptocurrency exchange prepares to settle its debt with creditors, recent communications reveal a meticulous verification process and ongoing refunds through both bank transactions and cryptocurrency exchanges.

Mt. Gox progresses in the reimbursement plan: Bitcoin (BTC) and Bitcoin Cash (BCH) addresses of the creditors confirmed

In the latest developments of the recovery process of the hacked cryptocurrency exchange Mt. Gox, creditors are preparing for the upcoming refunds of Bitcoin (BTC) and Bitcoin Cash (BCH). 

After the start of bank refunds in December 2023, the trustee of Mt. Gox began the crucial task of verifying the identity of the creditors and confirming the existence of their accounts, particularly on the Bitstamp and Kraken platforms.

Many creditors of Mt. Gox have reported receiving emails indicating the completion of identity verification for their cryptocurrency exchange accounts. These accounts are intended for the upcoming refund in BTC and BCH.

An excerpt from one of these emails, shared on the Mt. Gox insolvency hub on Reddit on January 22nd, highlights that a cryptocurrency exchange mentioned in the user’s rehabilitation request has successfully confirmed ownership of the account with the trustee.

It is now expected that the user will sign the agency’s receipt to receive the refund in BTC/BCH.

However, the email warns users that the inability to receive the refund may occur if their accounts were to be disabled or blocked in the future. 

Similar reports from various posts on Reddit confirm the receipt of such emails, with a predominant number of confirmations coming from Bitstamp exchange users.

 While some Kraken users have admitted to receiving the confirmation email, a significant portion has reported not having received it yet.

The reassurance of other exchanges

In addition, among the ongoing refunds, some exchanges involved in the process have reassured users that they will continue to serve customers associated with Mt. Gox in certain countries, even after withdrawing from those jurisdictions.

For example, Bitstamp, which ceased operations in Canada on January 4, 2024, has stated its commitment to serving local accounts involved in the settlement of Mt. Gox. 

The email assures users that these accounts will remain open until all funds owed by Mt. Gox are fully reimbursed. However, the scope of these accounts will be limited exclusively to withdrawal functions, as all other services, including deposits and trading, have been discontinued.

These recent communications coincide with the progress of the trustee in the refunds of bank accounts, which first emerged at the end of December 2023. In particular, some creditors have reported receiving double payments during this initial phase.

Founded in 2010, Mt. Gox was once the largest global Bitcoin exchange, capable of facilitating about 70% of all BTC transactions, before experiencing a significant setback in 2014.

A security breach has caused the loss of 850,000 BTC, making it one of the largest cryptocurrency failures in history. The reimbursement plan includes the distribution of 142,000 Bitcoin and 143,000 Bitcoin Cash to creditors, as well as 69 billion Japanese yen (510 million dollars), with a deadline set for October 2024.

Conclusions 

In conclusion, the recent steps forward in Mt. Gox’s reimbursement plan mark a crucial chapter in the tumultuous history of the cryptocurrency exchange.

While the trustee meticulously confirms the Bitcoin addresses of the creditors and moves towards refunds on Bitstamp and Kraken, the long-awaited resolution for those who were affected by the 2014 security breach is approaching. 

The receipt of confirmation emails from creditors adds a tangible level of guarantee to the process, emphasizing the commitment to a thorough identity verification procedure.

With the trustee simultaneously executing bank refunds and exchanges like Bitstamp committing to continue service in specific regions, the intricate network of Mt. Gox’s rehabilitation becomes more evident. 

The imminent disbursement of 142,000 Bitcoin, 143,000 Bitcoin Cash, and 69 billion Japanese yen is a testament to the efforts made to remedy one of the most significant cryptocurrency failures in history.

With the approaching deadline of October 2024, the cryptocurrency community is closely following the final resolution of a saga that began with the rise to power of Mt. Gox in 2010 and culminated in the unprecedented security breach of 2014. 

The confirmation of the Bitcoin addresses of the creditors represents a fundamental step towards the closure of this complex and lengthy repayment process.