Mt. Gox error pays creditors two-fold, now they must return excess

abdelaziz Fathi

Some creditors of the defunct cryptocurrency exchange Mt. Gox have reportedly received double payments. While some users have already sent the extra money back, others are hesitant or making conditions for returning it.

Mt. Gox

This incident adds another layer of complexity to the long-standing saga of Mt. Gox, which was once a dominant force in the Bitcoin trading space before its collapse in 2014.

Nearly a decade after the exchange’s downfall, creditors have begun receiving their repayments, primarily in Japanese yen via PayPal. But according to posts on the Mt. Gox creditor subreddit and a dedicated Telegram channel, several users said they received double the amount they were owed.

One Reddit user, u/rlycreativename, shared the contents of an email they claimed to have received from the Mt. Gox Rehabilitation Trustee. The email acknowledged the error, stating that the transfer was “inadvertently made twice” due to a system issue, and requested the return of the second payment.

Other users, like u/lukhaz and u/CaptainValor, also reported similar incidents of receiving double payments or being contacted by the Trustee regarding the error. While some users, like u/PPvotersPostingLs, have complied and returned the additional funds, others were reluctant to do so.

Some view the mistake as understandable, while others, frustrated by the long wait and the difficulty in recovering their funds, indicated they might not return the excess payment without certain conditions being met.

Repayments to creditors are being carried out in various tranches, including the base repayment, the early lump-sum repayment, and the intermediate repayment. However, Nobuaki Kobayashi, the trustee responsible for managing Mt. Gox assets, cautioned that the repayment schedule is still subject to changes depending on the prevailing circumstances, and the exact timing of repayments to individual rehabilitation creditors has not been finalized.

Kobayashi disclosed that Mt. Gox’s liquidators redeemed 7 billion yen ($46.9 million) from trust assets to facilitate these repayments. After this redemption, a balance of 8.8 billion yen remains in the trust assets.

Bitstamp and BitGo were appointed by Mt. Gox trustee as some of the designated crypto exchanges to assist in the repayment procedures to creditors. A creditor can choose his preferred cryptocurrency exchange and register as a user for the receipt of the relevant assets according to the repayment procedures under the rehabilitation plan.

  • Read this next

    Digital Assets

    SBF claims “zero loss” to FTX customers, 100-year sentence is “grotesque”

    Sam Bankman-Fried, the former FTX CEO who was found guilty of fraud charges last year, is facing his sentencing next month. But before that day arrives, he’s making a plea for what he considers a fair shake.

    Digital Assets

    Bitcoin nears $62,000, sparking retail buying frenzy

    Bitcoin dashed past the $61,000 barrier on Wednesday, a peak it hadn’t touched since the waning days of November 2021.

    Market News

    OPEC+ Extension of Oil Output Cut Causes Rally

    The dynamics surrounding crude oil are indeed fascinating, given its unique role as both a globally traded commodity and a vital energy source deeply influenced by the OPEC+ alliance’s decisions.

    Institutional FX

    DKK reports 226% growth in 2023 with eyes on African expansion

    “Our numbers are beginning to show how we are powering, the growth required by emerging markets, and we plan for the success of our strategies to continue to thrive in 2024.”

    Industry News

    ‘WTF’ as in ‘What The Fraud?’, Sumsub’s new podcast on digital fraud

    “We found a lack of informative podcasts talking about digital fraud threats and prevention for business owners. So, we decided to dive in and share our expertise along with industry top minds in the ‘What The Fraud?’ podcast.”

    Digital Assets

    Coin Metrics integrates market data from Cboe Digital

    “We are pleased to work with Coin Metrics and believe that having quality and timely data, and systems to analyze that data, will help crypto markets mature as well as evolve to become a core component of a diversified investment portfolio. We are focused on providing access and solutions to the spot and derivatives crypto market in a way which mirrors an investor’s experience with traditional markets.”

    Fintech

    AU10TIX launches KYB solution to address regulatory requirements

    “Our customers have been requesting a comprehensive KYB solution, because money laundering and fraud have become far too prevalent in the corporate world. Our unified KYB/KYC solution is essential for identifying bad actors and maintaining a safe business environment in 2024.”

    Digital Assets

    Japan Is Rapidly Emerging As A Global Leader In Compliant Crypto Payments

    Japan is often hailed as one of the most forward-thinking nations in the crypto industry, with its government taking a very positive stance on the potential of concepts such as Web3. 

    Digital Assets

    Kraken launches institutional arm

    “If you already work with Kraken, you know how much we care about offering high quality products and a client-first experience. We’ve been the leading crypto exchange for more than a decade and through Kraken Institutional, we’ll offer the same deep expertise and cutting-edge technology to propel trading excellence for institutions.”

    <