The defunct bitcoin exchange Mt. Gox is set to start distributing repayments in Bitcoin and Bitcoin Cash as early as next month, according to a notice from Rehabilitation Trustee Nobuaki Kobayashi on Monday.
“The Rehabilitation Trustee has been preparing to make repayments in Bitcoin and Bitcoin Cash under the Rehabilitation Plan. Now that these preparations are in place, the Rehabilitation Trustee will commence the repayments in Bitcoin and Bitcoin Cash … from the beginning of July 2024,” Kobayashi wrote in the notice.
Kobayashi noted that long time was taken to ensure the repayment arrangements are safe, reliable, and compliant. The repayments will begin in the order of the cryptocurrency exchanges that have completed the necessary information exchange and confirmation processes with the Rehabilitation Trustee.
Rehabilitation process
This news follows reports from Mt. Gox creditors that the trustee’s rehabilitation claims system had been updated with the amounts of Bitcoin and Bitcoin Cash to be repaid, and the completion date for repayment in April.
In May, Mt. Gox moved at least $2.9 billion in Bitcoin for the first time in five years. Despite this transfer, Mt. Gox still holds roughly $9.42 billion worth of bitcoin in its tracked wallets.
The Mt. Gox Trustee issued a statement explaining the recent transfers. He confirmed that the bitcoin and bitcoin cash are being managed securely and requested patience from creditors as preparations for repayments continue.
Former Mt. Gox CEO Mark Karpeles reassured creditors on social media, stating, “As far as I know, everything is fine with Mt. Gox. The trustee is moving coins to a different wallet in preparation for the distribution that will likely happen this year. There is no imminent sale of bitcoins happening.”
The bankruptcy process plans to repay creditors with a mix of fiat currency, bitcoin, and bitcoin cash. While fiat payments have begun, bitcoin and bitcoin cash payments have yet to be distributed.
Mt. Gox, once the world’s largest bitcoin exchange, collapsed in 2014 after a major security breach led to the loss of 850,000 bitcoins. In September 2023, the trustee announced a new reimbursement plan for creditors, which includes 142,000 bitcoins, 143,000 bitcoin cash, and 69 billion Japanese yen (roughly $510 million).
