Mt.Gox creditors will start receiving Bitcoin payouts from March 10th
Almost a decade on, the end of the Mt.Gox case will resolve historical injustice on early Bitcoin and crypto investors who have lost potential high profits over the years.
One of the biggest cryptocurrency-related hacks, Mt.Gox, which saw hackers siphon off around 850,000 BTC, is nearing the end of its resolution with creditors expected to start receiving payouts from March 10. After the 2014 hack, Mt. Gox again with approx. 142,000 BTC, 143,000 Bitcoin Cash (BCH) and 69 billion Japanese Yen. As such, the defunct Japanese cryptocurrency exchange has set September 30, 2023 as the deadline for the repayments according to a recent statement.
Mt.Gox Hack Solution: Bitcoin Payouts
Almost a decade on, the end of the Mt.Gox case will resolve historical injustice on early Bitcoin and crypto investors who have lost potential high profits over the years. Also, most Mt.Gox investors who lost their money after the hack had considered it a loss and may never get their money back.
“Well, for myself, I had pretty much written off the Bitcoin I still had on Mt. Gox in 2014 as a loss, so philosophically, anything I get back now is a bonus to the cold storage. It’s been stretching for many more years than anyone expected , and so that will be welcome, I’m sure all creditors will finally get paid,” said Blockstream CEO Adam Back, who is a Mt. Gox creditor.
The Mt.Gox repayment is expected to be further delayed by cryptocurrency exchanges chosen by the creditors. For example, Crypto Exchange BitGo noted that it will take up to 20 days for the refund to be processed. Kraken exchange, on the other hand, confirmed payments can take up to 90 days to be processed.
According to a moderator of the MtGoxInsolvency subreddit, creditors will receive a mix of around 71 percent crypto and 29 percent cash after the initial payment of around 200k yen.
Global regulators are working to prevent another Mt.Gox event in the crypto industry
The cryptocurrency market has grown significantly over the past ten years since the fall of Mt.Gox into a trillion-dollar industry. Market analysts estimate that mainstream adoption of the cryptocurrency industry will push its valuation into the tens of trillions of dollars in the coming decades. Moreover, Bitcoin has already been adopted as legal tender in two nations, El Salvador and the Central African Republic.
The fall of FTX and Alameda Research late last year has expanded the need for clear rules for the storage of cryptoassets and the licensing of centralized exchanges. However, FTX Japan has started paying back creditors through its Liquid account.
The United States SEC recently proposed rule changes to improve the protection of client funds managed by registered investment advisers. The SEC intends to regulate investment advisers to avoid misappropriation of investors’ assets.
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