Mt. Gox Trustee Advances Bitcoin Repayments with Identity Verification

The trustee overseeing the recovery of the hacked cryptocurrency exchange, Mt. Gox has initiated the process of Bitcoin repayments. Reports indicate that creditors are receiving emails from Mt. Gox, confirming the completion of identity verification for crypto exchange accounts designated for Bitcoin and Bitcoin Cash repayments.

One such email, shared on the exchange’s insolvency hub on Reddit on Jan. 22, reveals that a crypto exchange mentioned in the user’s rehabilitation claim has verified account ownership with the trustee. This confirmation enables the exchange to accept the user’s subscription to the agency receipt for receiving repayment in BTC/BCH.

Important Notice for Creditors

The email cautions users that accounts disabled or frozen in the future may not be eligible to receive repayment in BTC/BCH. Numerous Reddit users, particularly from Bitstamp, have acknowledged receiving similar emails from the exchange’s trustee. 

Certain exchanges participating in the repayments have reassured users that they will continue serving Mt. Gox-related customers in specific countries, even after exiting those jurisdictions. Bitstamp, for example, announced that despite ceasing operations in Canada on Jan. 4, 2024, it will maintain services for local accounts involved in the settlement.

Mt. Gox Bank Account Repayments and Recent Developments

The new Mt. Gox emails coincide with the trustee’s progress in bank account repayments. Reports of the first Mt. Gox repayments surfaced in late December 2023, with some creditors receiving double payments.

Established in 2010, Mt. Gox was once the largest Bitcoin exchange globally, handling approximately 70% of all BTC transactions before its collapse. The exchange suffered a security breach in 2014, losing 850,000 BTC and marking one of the most significant crypto bankruptcies.

The exchange is anticipated to repay creditors 142,000 Bitcoin and 143,000 in Bitcoin Cash, along with 69 billion Japanese yen ($510 million), by October 2024.