Mount Gox customers are (finally) getting repaid, Bitcoin drops
Last Updated on 27 December 2023 by CryptoTips.eu
There is hope for all those who had a customer account with any crypto platform that has ever been hacked (or gone bankrupt because of mismanagement). We informed you this past weekend how Wall Street was buying out FTX’s debtors.
It now appears that the very early Bitcoin investors, the customers of the legendary Mount Gox, are also being repaid after the hack of, wait for it, 2014.
Customers lost about 850,000 Bitcoins at that time, which at today’s price would be worth about 35 to 36 billion dollars.
For those who don’t know the legendary story of Mt Gox, I prefer to summarize it in this way: if the world of crypto were the bible, then Mt. Gox is the creation story (or Genesis if you will). It was the first major event in the world of crypto, after the creation of Bitcoin itself of course.
JUST IN: #Bitcoin price tumbles as Mt. Gox has officially started repayments to customers after nearly a decade.
— WhaleWire (@WhaleWire) December 26, 2023
This cash distribution signals the impending release of over $6 billion in Bitcoin.
Mt. Gox (or Mount Gox) was the first major crypto exchange to allow Bitcoin to be traded from 2011 onwards. The exchange was based in Tokyo and at its peak traded almost 70% of all Bitcoin in circulation at the time.
The platform was hacked in 2014 and subsequently closed. Anyone who had a customer account could file a claim that would be heard by the courts in Japan. They took their sweet time and have now, almost ten years after the hack, decided to pay out part of the funds (i.e. the Bitcoins that were recovered).
Almost 10 years after the Mt. Gox hack, customers are starting to receive payouts of 850,000 #bitcoin (BTC) now valued at $36B. Some have received payouts in yen over Paypal, while others are still waiting. #MtGox #CryptoExchange
— Learn2Earn (@Learn2Earnify) December 26, 2023
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The news was welcomed yesterday on the Reddit subforum of the Mt Gox creditors who showed screenshots of their payments.
Several of them confirmed that they had received payment in Japanese Yen via the PayPal platform. Next up is payment in Bitcoin.
Bitcoin
Hopeful for all those who still have a debt claim with FTX. Although you can hope that you don’t have to wait ten years for that.
Finally the payments started for #mtgox claims after the whole thing was 9+ years in court. Once #BTC #BCH portion is paid (even if a portion from total claim, there are still high double digit gains), it could add to sell pressure as 138k BTC is due to be distributed. đ„đ pic.twitter.com/UTWk6szhrb
— macximus prime (@macxprime) December 26, 2023
When the news did the rounds on social media, the price of Bitcoin started dropping as a result, mostly because several billions are likely to be paid out. However, I do expect Whales to swoop in as soon as certain support levels are touched upon.
At the time of writing, Bitcoin is being traded for $42,600.
Primakov / Depositphotos.com