The defunct Japanese cryptocurrency exchange Mt.Gox has started refunding Bitcoin (BTC) to its customers, after about a decade since it ceased operations.
Relief At Last for Mt.Gox Customers
The refund of Bitcoin to Mt.Gox customers was teased by several crypto analytics service providers including Lookonchain. Lookonchain reported hours earlier that wallets labeled Mt.Gox have transferred 12,240 BTC worth approximately $843.6 million to a new wallet.
The wallets tagged #MtGox are transferring $BTC out.
So far, #MtGox has transferred 12,240 $BTC($843.6M) to a new wallet and still holds 125,651 $BTC($8.66B).
Address:
1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6. pic.twitter.com/tGYGO6b2eb
— Lookonchain (@lookonchain) May 28, 2024
As seen from the transfer chart, the Mt.Gox transfer occurred in tranches of 2,000 BTC in five places. One transfer featured 2,240 BTC, the highest of the batch. Overall, over 140,000 BTC have been moved in the past 24 hours with a more than $9 billion worth.
The Mt.Gox story is one that is worth telling considering it marked one of the first major hacks in the industry. The hacking event that brought it down saw a hacker drain its treasury of 750,000 Bitcoin belonging to its customers. Additionally, the firm said it lost 100,000 BTC of its own with the total theft at the time worth around $473 million at the time the first filed for bankruptcy.
The price of Bitcoin has since grown from around $815 in Q1 2014 when Mt.Gox filed for bankruptcy to $67,574.68 at the time of writing. The bankruptcy proceedings of the exchange took a very lengthy time, especially as it had to sort customer repayments based on crypto and cash respectively.
Resolving Crypto Bankruptcies
While no crypto trading platform guarantees no user safety, trends in the industry prove that most bankruptcies eventually end up leading to creditor repayment. Besides the Mt.Gox repayment, Crypto-Vanguard also reported the approval of the Genesis Global bankruptcy repayment plans.
Under this plan, about 77% of users’ capital was set to be refunded. Also, the New York Attorney General (NYAG) and Genesis reached a $2 billion settlement deal. Under this deal, the regulator will pay out about $1.1 billion to Gemini Earn customers for whom Genesis had their funds locked at the point it filed for bankruptcy.
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