The defunct crypto exchange, Mt. Gox, is set to start returning over 140,000 Bitcoin to victims of the 2014 hack. This significant repayment plan has been in the works for years, with many deadlines being moved continually.
Repayment Plan Details
Mt. Gox announced that repayments will commence in the first week of July 2024. The Rehabilitation Trustee, Nobuaki Kobayashi, confirmed in a statement that repayments would be made in Bitcoin and Bitcoin Cash. Before the payments are processed, due diligence and safety steps will be required.
Market Impact
These repayments are expected to add selling pressure to the Bitcoin market. Early investors will receive assets at a much higher value than their initial investment before 2013, making them likely to sell part of their holdings.
Historical Context
Mt. Gox was once the leading crypto exchange, handling over 70% of all Bitcoin transactions. In early 2014, hackers attacked the exchange, resulting in the loss of approximately 740,000 Bitcoin, valued at $15 billion at current prices. This hack was the most significant among several attacks on the exchange between 2010 and 2013.
Repayment Plan Progress
Trustees have been working on the repayment plan for several years, with a deadline set for October 2024 by a Tokyo court. In May 2024, Mt. Gox moved over 140,000 BTC, worth around $9 billion, from cold wallets to an unknown address in 13 transactions. This marked the first on-chain wallet movements in five years.
