Mt Gox Trustee Initiates Repayments to Victims

The trustee overseeing the Mt. Gox crypto bankruptcy estate has begun the process of repaying victims affected by the exchange’s notorious 2014 hack. Users on the ‘mtgoxinsolvency’ subreddit are reporting Japanese yen deposits flowing into their PayPal accounts.

While some users who opted for lump sum payments shared screenshots of PayPal’s confirmation emails, those anticipating Bitcoin (BTC) and bank reimbursements seem to be waiting in vain. Several recipients expressed confusion as they received amounts lower than expected, and some reported accidental double payments.

Call to Return Erroneous Payments

Nobuaki Kobayashi, the Mt Gox Rehabilitation Trustee, has reportedly advised individuals who received double payments in error to return the surplus funds. Kobayashi had earlier disclosed receiving $47 million from the liquidation of the bankrupt exchange’s assets. In November, he extended the repayment deadline, originally set for October 31, 2023, to October 31, 2024, with approval from the Tokyo District Court.

Mt Gox’s Troubled History

Recall that Mt. Gox, once a prominent Japanese Bitcoin exchange, collapsed in 2014 after admitting the loss of nearly 750,000 customers’ BTC and 100,000 of its own. The exchange’s former CEO, Mark Karpeles, faced charges of embezzlement and aggravated breach of trust, ultimately being found not guilty on most counts.

In 2018, Kobayashi asserted securing sufficient funds to reimburse creditors. Remarkably, around 99% of creditors endorsed his plan, officially ratified on November 16, 2021. As the repayment process unfolds, the Mt Gox saga continues to be a focal point in the crypto community, highlighting the challenges and complexities associated with historic cryptocurrency exchange collapses.