Mt. Gox Releases $9 Billion in Bitcoin to Creditors

Mt. Gox is starting the process of returning its $9 billion in Bitcoin to creditors after a cyberattack in 2011 led to its bankruptcy in 2014.

Mt. Gox, one of the earliest Bitcoin exchanges, has officially begun the process of surrendering its $9 billion Bitcoin hoard to its creditors. On Monday, April 22, a number of creditors of Mt. Gox said that they had begun to get updates regarding their claims.

Mt. Gox Creditors Receive Updates Over their Bitcoin Holdings

Information such as the number of bitcoins that need to be returned and the dates on which they are to be repaid is included in the updates that creditors of Mt. Gox have received.

On the other hand, despite the fact that he was in possession of the information concerning the repayment date, Brian Dixon, the chief executive officer of Off the Chain Capital, which was responsible for purchasing Mt. Gox claims, declined to divulge it.

“This is the first time we’ve seen an update such as this on repayment status, which is a good sign and a step in the right direction”.

Adam Back, the Chief Executive Officer of Blockstream, a blockchain infrastructure provider revealed that he has received alerts about the scheduled token returns, but he is currently awaiting confirmation of the exact dates.

The Tokyo-based cryptocurrency exchange Mt. Gox, which was formerly the largest Bitcoin exchange in the world was the victim of a cyberattack in 2011 and it subsequently filed for bankruptcy in 2014.

In the previous year, prosecutors in the United States of America accused two Russian individuals of working together with other individuals to infiltrate the servers of the exchange.

The collapsed platform is still in possession of around 137,892 bitcoins which have a value of $9.2 billion, according to statistics provided by Arkham Intelligence.

Previous records reveal that Mt. Gox not only held Bitcoin Cash but also held fiat currency, some of which has already received a refund. Mt. Gox trustee has announced that the creditors should receive base intermediary and lump sum payments by the 31st of October this year.

This announcement aligns with the ongoing progress in the winding-up procedure. Notable is the fact that a significant number of years have passed since the breach at Mt. Gox.

Since the platform’s attack in 2014, the affected users have been waiting for payment. The topic of whether or not these creditors will sell their bitcoins once they have received them is one that has been on everyone’s mind for a considerable amount of time.

This could potentially lead to some selling pressure on Bitcoin, however, the likelihood of all creditors selling their Bitcoin simultaneously remains relatively low.