Nearly a decade after the collapse of the Bitcoin exchange Mt. Gox, creditors have started receiving long-awaited repayments, though a system glitch has led to some receiving double payments.
Reports from various social media platforms, including the Reddit page r/mtgoxinsolvency, indicate that repayments in Japanese Yen have commenced. One Reddit user, Free-end254, shared an email receipt from PayPal confirming their payment. However, not all repayments were complete, with one user noting they received only a portion of their 0.125 Bitcoin claim, amounting to about $200.
The repayment process involves several tranches, including base repayment, early lump-sum repayment, and intermediate repayment. Each claim’s yen amount is determined by a later spot price, ensuring fair compensation for the assets stuck on the exchange since February 2014. The first instances of these repayments appeared on Dec. 21, with a user on the now-defunct social platform Japanese X reporting a bank transfer in Yen.
However, a recent system issue at Mt. Gox has led to some creditors receiving double payments. Reddit user u/rlycreativename posted an email from the Mt. Gox Rehabilitation Trustee, stating that due to a system error, double transfers were made. The email demanded the return of the second transfer, citing legal obligations. Users like u/CaptainValor humorously remarked on the situation, treating the additional payment as a late Christmas present.
Despite the mix-up, some users, like u/PPvotersPostingLs, have willingly returned the excess funds. However, the situation has sparked debate, with others like u/JALEW expressing reluctance to return the funds quickly, citing the long wait and difficulties faced in the initial repayment process.
This development follows the delay in the repayment deadline from October 31, 2023, to 2024, announced by the Mt. Gox Trustee in September. Trustee Nobuaki Kobayashi had previously informed creditors in November about the commencement of repayments.
The Mt. Gox debacle, marked by the loss of over 740,000 Bitcoin valued at $460 million at the time, was one of the first major crypto exchange hacks. Today, the lost funds’ value has escalated to over $31 billion. The recent repayments mark a significant milestone in the protracted legal battle faced by the creditors since the exchange’s bankruptcy.