A trustee overseeing the now-defunct cryptocurrency exchange Mt. Gox has announced that certain creditors have begun receiving compensation in the form of digital assets.
In a recent update, Nobuaki Kobayashi, the trustee for Mt. Gox, revealed that some creditors are being reimbursed with Bitcoin (BTC) and Bitcoin Cash (BCH) as part of the company’s rehabilitation plan. However, Kobayashi clarified that not all creditors have been settled, with arrangements pending completion under specific conditions.
“On July 5, 2024, repayments were made in Bitcoin and Bitcoin Cash to some rehabilitation creditors through designated cryptocurrency exchanges, following the Rehabilitation Plan,” Kobayashi stated. “Repayments to other creditors will be expedited once the following conditions are met: (i) verification of registered accounts and related details, (ii) acceptance of the Agency Receipt Agreement by designated cryptocurrency exchanges, (iii) finalization of discussions between the trustee and designated exchanges regarding repayments, and (iv) confirmation of secure and safe repayment processes. Eligible creditors are urged to await further instructions.”
Mt. Gox was once the world’s largest BTC exchange in the early 2010s before filing for bankruptcy, losing a substantial amount of tokens due to theft.
Earlier this month, CoinShares, a crypto asset management firm, published a report suggesting that most Mt. Gox creditors are likely to retain their BTC holdings. When they eventually sell, transactions are expected to occur across multiple crypto exchanges such as Bitstamp, Kraken, Bitbank, BitGo, and SBI VC Trade, minimizing the impact of large simultaneous sell-offs on market prices.
“Distributions will be staggered across various exchanges throughout the month, reducing the potential impact of concentrated selling pressure,” the report detailed.
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Featured Image: Shutterstock/Natalia Siiatovskaia
