Established in 2010, Mt. Gox was a prominent player in the early cryptocurrency exchange market. However, in 2014, a major security breach led to the loss of 744,408 bitcoins, valued at around $450 million at the time. The current valuation of the stolen bitcoins is a staggering USD 29 billion.
Subsequent investigations following the hack resulted in the recovery of a notable portion of the lost bitcoins. The breach was ultimately linked to sophisticated cyberattacks orchestrated by individuals who successfully infiltrated the exchange’s digital wallets.
After a decade of dormancy, Mt. Gox, the defunct cryptocurrency exchange, has initiated repayments to its creditors. In June 2023, it was reported that the U.S. Department of Justice identified the culprits as Russian nationals Alexey Bilyuchenko and Aleksandr Verner.
Users have reported receiving payments for their long-blocked Bitcoin deposits in fiat currencies, marking the first tangible evidence of compensation.
Reports on social media and forums indicate that Mt. Gox is employing PayPal for Japanese Yen-denominated repayments.
The trustee overseeing the exchange’s estate, Nobuaki Kobayashi, communicated the start of repayments, acknowledging the complexity of the process and projecting ongoing repayments into 2024.
The repayment deadline, extended to October 31, 2024, allows for potential early repayments for creditors who have provided the necessary information. Creditors anticipate repayments in tranches, including the base, early lump-sum, and intermediate repayments.
The introduction of a voting rights system aims to standardize amounts for fairness between fiat and crypto creditors in yen, offering hope for closure to Mt. Gox creditors after a decade-long wait.
The Mt. Gox saga has played a pivotal role in shaping discussions on cryptocurrency security and regulation, prompting substantial improvements in security measures across cryptocurrency exchanges and influencing global regulatory discourse on digital assets.
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