- The Mt.Gox Bitcoin exploit happened in 2014.
- This exploit remains the largest bitcoin exploit in cryptocurrency history.
- However, Mt.Gox creators may start receiving their bitcoins this month.
Mt.Gox creditors may have reason to smile after the exchange’s January statement hinted that creditors could start receiving Bitcoin (BTC) this month.
It’s been about 8 years since The Mt. The Gox hack happened in early 2014 resulting in the loss of around 850,000 BTC which today is worth over $20.060 billion, making it the worst Bitcoin hack ever as detailed in our Bitcoin Stats research.
Most Mt.Gox creditors have given up hope of getting their bitcoins back since the issue has been going on for years. one mountain. Gox creditor Adam Back, who is also CEO of Blockstream, said via Telegram:
“Well, for me, I pretty much wrote off Bitcoin on Mt. Gox in 2014 as a loss, so philosophically anything I get back now is a cold storage bonus. It’s stretched out many more years than anyone expected, and so I’d be welcome to Sure any creditors will finally get paid.”
Early repayment starts from March 10th
According to Mt.Gox’s January statement, creditors are expected to start seeing early bitcoin payments from March 10th. The early repayment process is scheduled to last for approximately seven months, until September 30, 2023.
Early payments include early payments and intermediate payments. Other amounts will be paid later.
Mt.Gox creditors were supposed to register with an exchange and nominate it to receive payments on their behalf. However, the exchanges have given different payment processing timelines. For example, cryptocurrency exchange BitGo said it would take about 20 days to process a payment, while Kraken said it could take up to 90 days to process payments.
The amount of Bitcoin to be paid
It is not clear how much Bitcoin will be paid back to Mt.Gox creditors during the payment period. However, it will apparently be part of Mt.Gox’s balance sheet which as per the balance sheet in 2019 totals around 142,000 BTC, 143,000 BCH and 69 billion yen. It is believed that the balance sheet has not changed much since then.
There is an expectation that plaintiffs may receive about 21% of the value of a civil rehabilitation claim because exchange rates have been revalued since the time the bankruptcy filing was filed.
According to the forum moderator of the MtGoxInsolvency subreddit, the first 200,000 yen of each creditor’s claim will be paid in yen. If the claim is greater than 200,000 yen, the creditors will choose cryptocurrency and cash, as they will receive 71% payment in cryptocurrency and 29% in cash after the initial payment.