From Ashes To Redemption: Bitcoin Exchange Mt. Gox Emerges From Ruins To Honor Debts

Mt. Gox, the once-dominant Bitcoin (CRYPTO: BTC) exchange that ceased operations in 2014, announced imminent cash repayments to some creditors.

In an email sent to creditors, the exchange indicated the rehabilitation trustee was working to initiate cash repayments within 2023, although the process was expected to extend into 2024 due to the high volume of rehabilitation creditors, The Block reported.

Rehabilitation Trustee Nobuaki Kobayashi stated in the email, “The specific timing of repayment to individual rehabilitation creditors is undetermined, and therefore, it will not be possible to provide advance notice to each rehabilitation creditor regarding the specific timing of their repayment.”

Creditors can monitor their repayment status through the exchange's claim filing system.

Additionally, Kobayashi informed creditors in a separate notice that on Nov. 17, the rehabilitation trustee secured 7 billion yen (approximately $46.9 million) from trust assets to facilitate these repayments.

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Post-redemption, the trust assets stand at 8.8 billion yen.

This development marked a significant step towards repaying all creditors.

Previously in September, Mt. Gox had extended the deadline for rehabilitation creditor repayments from Oct. 31, 2023, to the same date in 2024.

Founded in 2010 in Tokyo, Mt. Gox rapidly grew to become the world's leading Bitcoin exchange, handling 70% of all global Bitcoin trades by 2013.

The exchange's operations came to a halt in early 2014, leading to the suspension of trading and subsequent offline status.

The company eventually filed for bankruptcy protection following the loss of over 800,000 Bitcoin.

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