MT. Gox, the cryptocurrency exchange that was hacked for 850,000 Bitcoin in 2014, will begin refunding in BTC and BCH to affected users from July 2024, according to a document released release on June 24.
The announcement from Recovery Department Head Nobuaki Kobayashi on the exchange’s refund plan includes the following key points:
– Refund details: Creditors of Mt. Gox will start receiving repayments in Bitcoin (BTC) and Bitcoin Cash (BCH) from July 2024. This is part of the Recovery Plan to compensate creditors who lost money due to the attack Security entered the exchange in 2014.
– Prepare and ensure safety: Managers have taken the time to ensure the returns process is safe, reliable, and compliant with regulations, including coordinating with cryptocurrency exchanges to exchange and confirm information necessary.
“Refunds will be made from early July 2024,” Kobayashi said, adding that thorough due diligence and certain safety steps are required before payments are made.
– Amount and deadline: Previously, creditors were informed that they would receive 142,000 BTC (equivalent to $8.68 billion at the current Bitcoin price of $61,165) and 143,000 BCH (equivalent to $50.7 million at the current BCH price of 354.6 USD), along with a total cash amount of 69 billion Japanese yen (equivalent to about 510 million USD). The total value refunded is equivalent to about 9.2 billion USD. Distribution is expected to be completed by October 2024.
Traders said the refund will add more selling pressure to the Bitcoin market as early investors will receive assets at much higher values than pre-2013 prices, which may prompt them to sell off some of their holdings. Immediately following the announcement, Bitcoin and BCH prices reacted negatively, falling 5% and 9% respectively in the past 24 hours.
Bitcoin price chart 1 day. Source: TradingView
BCH price chart 1 day. Source: TradingView
Price fluctuations have caused the liquidation of more than 280 million USD in the past 24 hours, of which more than 259 million USD of Long orders were destroyed, affecting 90,345 traders.
Source: Coinglass
MT. Gox was the world’s largest Bitcoin exchange until it suffered a security attack in 2014, resulting in a loss of 850,000 BTC. The exchange then filed for bankruptcy and efforts to compensate creditors went on for years.
In May this year, the exchange moved more than 140,000 BTC, worth about $9 billion, from a cold wallet to an unknown address for the first time in 13 transactions, marking the first on-chain wallet movement after 5 years.
Itadori
Bitcoin Magazine
