After a decade of waiting, victims of failed cryptocurrency exchange MT Gox are starting to receive refunds. The trustee of the brokerage that went bankrupt in 2014 will begin the process of paying about half a billion dollars to creditors after court approval.
The move represents a breakthrough in the MT Gox bankruptcy case, which marked a turbulent era for the cryptocurrency market. The undistributed amount, which the trustee has held for more than five years, will now be given to approximately 10,000 investors.
A notable aspect of this repayment phase is the choice offered to creditors between receiving payment in bitcoin or fiat money. It is estimated that 20% choose to receive cash, which implies that the manager may have to sell some of the bitcoins held. However, the exact value of the bitcoins to be distributed remains uncertain as there has been no movement on the network since 2018.
Wait 10 years
The MT Gox case has been a focal point in the world of cryptocurrencies, symbolizing the risks and volatility of the sector. This refund process, while slow, is a step toward solving one of the most infamous bankruptcy cases in the cryptocurrency world.
While some Japanese creditors have already confirmed receipt of payments, most international creditors are still waiting. The administrator has been criticized for delays in the process, which some say are due to the complexity of operations and the administrator’s own financial benefits in extending the process.
“I was reimbursed by Mt.Gox! Since I chose the final payment, I think it is a provisional payment. It took exactly ten years”says a Japanese investor.
Mt.Gox から弁済されてました！
を選択したので、中間弁済だと思われます。
10 years ago pic.twitter.com/qDntG5Wssg— びりある#全財産DeFi@𝐜𝐫𝐲𝐩𝐭𝐨𝐠𝐫𝐚𝐩𝐡𝐞𝐫 (@visvirial) December 21, 2023
In addition, the trustee and his or her law firm may face lawsuits after the case is completed, with creditors seeking an overview of costs claimed during the long period of the bankruptcy.
The lawsuit highlights the difficulties cryptocurrency investors face in the event of failed exchanges and raises questions about the efficiency and transparency of such legal processes.
As the cryptocurrency sector continues to evolve, the MT Gox case serves as a warning to investors about the need to be more careful with the bitcoins they purchase on centralized platforms.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
