Creditors Rejoice as MtGox Initiates Long-Awaited Repayments in BTC, BCH, Fiat

• MtGox will repay creditors with 142,000 BTC, 143,000 BCH, and $500 million.

• Creditors are relieved as the MtGox bankruptcy case nears resolution after years of waiting.

The Bitcoin exchange MtGox, which once had the highest market share, has been increasingly the center of attention. Most recent updates to the support of the Kraken BTC and BCH payment API interface hint that heavy things are about to come. Today, Reddit data shows that the interface reads ”payment being processed ” with a date of 13 May 2023.

MtGox’s massive crypto payout

Users have shared screenshots showing the repayment status of bitcoin and bitcoin cash on the Mt. Gox rehabilitation claims system. Additionally, some creditors have reported receiving fiat currency repayments in their bank accounts. Notably, one user mentioned receiving USD funds into their HSBC currency account, highlighting a smooth transaction process with zero fees incurred.

Reports indicate that the updates to the repayment table occurred over several dates, with fiat currency repayments reflecting as “complete” in the claim system. Users have shared their experiences, noting that the fiat transfer arrived in their bank accounts approximately a month after the updates to the repayment table. This timeline suggests a gradual rollout of reimbursements, with creditors receiving updates and payments in stages.

In many people’s minds, MtGOX has represented both hope and despair for investors for many years. The 2010 established exchange soared to the top of the global rankings in no time and is currently the biggest. It practically made history.

Yet, the second half of 2014 was quite disappointing for the currency after it suffered a severe security breach, which resulted in the theft and loss of all its 850,000 bitcoins. The consequences of the whole Craxy platform collapsing and sending tremors across the entire exchange were catastrophic. All the supposed investors became empty-handed.

 In September 2023, the trustee announced plans to reimburse creditors with 142,000 bitcoins, 143,000 bitcoin cash, and fiat currency totaling 69 billion Japanese yen ($510 million) by a new deadline of October 2024.

Additionally, in the same year, the administrator of the failed business entrusted with the clearance of the affairs appeared and made an important communication. The resolution of creditors was about to receive their dues as cryptocurrency and fiat, which were long(overdue). 

Creditors’ long-awaited relief

To be more specific, the payouts include Bitcoin Cash and Bitcoin, the latter of which is approximately about 69 billion Japanese yen, which is equivalent to $500 million as the currency’s value fluctuates. What is very definite is that getting these payments is not easy at all. This quick glance at screenshots posted by users indicates that fiat currency claims will be raised as they have already been.

Investors are relieved and surprised but not surprised to see the positive development. A certain MtGox creditor noted that Fiat (USD) is received into the account of a currency settlement HSBC and seems to be without any fees. Especially with their account, this math appears almost in real-time, enabling the community to know how fast the electronic money was processed.

To that end, their inputs acted like a trigger to overturn the standard procedure of the scheduled settlements. The update trail’s arrow reveals a sequence with point 15 in March, followed by the matching point cut on April 8, and the big arrow coinciding with when the BTC transactions were processed.