Mt. Gox to Begin Bitcoin and Bitcoin Cash Repayments in July

After a decade-long wait, the defunct cryptocurrency exchange Mt. Gox is finally set to distribute repayments to its creditors. Starting in July 2024, the exchange will return over 140,000 Bitcoin (BTC) and 143,000 Bitcoin Cash (BCH) to victims of the infamous 2014 hack.

The Mt. Gox Saga

Once the world’s largest Bitcoin exchange, Mt. Gox handled over 70% of all Bitcoin transactions during its early years. However, in early 2014, hackers attacked the exchange, resulting in the loss of an estimated 740,000 Bitcoin (worth $15 billion at current prices). The hack was the largest of several attacks on the exchange between 2010 and 2013.

The Repayment Plan

Trustees have meticulously crafted a repayment plan that has been in the works for several years. In May, the exchange moved over 140,000 BTC (worth around $9 billion) from cold wallets to an unknown address in 13 transactions—the first on-chain wallet movements in five years. Now, the Rehabilitation Trustee, Nobuaki Kobayashi, has confirmed that repayments will begin in July 2024. The process will involve both Bitcoin and Bitcoin Cash.

Market Impact

Early investors who lost their assets in the 2014 hack will receive their holdings at a much higher value than their original entry prices. This discrepancy may lead some to sell part of their holdings, potentially adding selling pressure to Bitcoin markets. As the repayments commence, traders will closely monitor market reactions.