Cryptocurrency exchange Bitstamp recently announced that the assets credited to creditors of the Mt. Gox Bitcoin exchange are now fully accessible following the completion of security checks. Repayments for former users of Mt. Gox began on July 25, with 20,000 users set to receive their funds in Bitcoin and Bitcoin Cash. Those who selected Bitstamp as their exchange will have their assets delivered to their Bitstamp accounts, with recipients expected to gain full control of their assets within a week. With Bitcoin currently trading at $68,787, many recipients are expected to realize significant gains compared to the time of the Mt. Gox collapse when it was valued at around $600.
Jean-Baptiste Graftieaux, global CEO of Bitstamp, emphasized the importance of the repayments, stating that while Mt. Gox investors should never have been unable to access their tokens, many will now make a substantial profit. Bitstamp users in the UK will have to wait a few more months before receiving their assets. Other exchanges, such as Kraken, have also completed repayments to Mt. Gox creditors. The long-awaited repayment of over $9.4 billion worth of Bitcoin to approximately 127,000 creditors is expected to relieve potential sell pressure on Bitcoin.
Mt. Gox had transferred billions in BTC assets to Bitstamp and Kraken as part of its redistribution process, with Bitstamp starting the redistribution process for creditors and Kraken having completed its part. Bitstamp received over $657 million in BTC from Mt. Gox, including significant amounts to specific addresses. Despite the significant on-chain activities related to the redistribution process, analysts note that the Bitcoin price has not been significantly affected as anticipated. Mt. Gox was operational from 2010 to 2014 and was responsible for 70% of Bitcoin transactions at its peak. The exchange began experiencing problems in early 2014, ultimately leading to its collapse and filing for bankruptcy in Japan.
Individuals impacted by the 2014 hacking incident have been waiting for a decade to receive compensation. In June 2024, Mt. Gox Rehabilitation Trustee Nobuaki Kobayashi announced that repayments of Bitcoin and Bitcoin Cash would commence in July 2024, with the total value of assets to be repaid amounting to $9 billion in Bitcoin and $55 million in Bitcoin Cash. Mt. Gox’s insolvency prior to its collapse was due to security vulnerabilities and poor management, with large amounts of Bitcoin remaining unaccounted for. Despite the long wait, the repayments are finally being made to creditors, providing some relief to those affected by the Mt. Gox collapse.
