Mt. Gox Trustee Confirms Repayment in Crypto for $33 Billion Hack Victims
After years of waiting, some customers of the defunct crypto exchange Mt. Gox may finally receive their share of the $33 billion worth of bitcoin that was lost in a massive hack in 2014.
According to posts on the mtgoxinsolvency subreddit group, some former customers have received an email from the Mt. Gox trustee, Nobuaki Kobayashi, asking for confirmation of their identity and account details. The email also states that the recipients will receive payment in bitcoin or bitcoin cash (BCH) to their account with the crypto exchange which they had previously nominated.
Mt. Gox was launched in 2010 and was the world’s biggest crypto exchange at the time of the hack in 2014, handling over 70% of all bitcoin transactions. The hack resulted in the loss of 850,000 BTC, which was equivalent to $450 million at the time, but is now valued at over $33 billion. The hack also triggered a bankruptcy proceeding and a long legal battle between the exchange, its creditors, and various claimants.
The exchange was able to recover around 20% of the stolen funds, which have been held by the trustee since then. In December 2020, some customers reported receiving payouts in yen to their Paypal accounts, as part of the civil rehabilitation process. However, many customers have been waiting for the repayment in crypto, which was approved by a Tokyo court in March 2020.
The repayment in crypto could have a significant impact on the bitcoin market, as it would release a large amount of coins into circulation, potentially affecting the supply and demand dynamics. This could be especially relevant as the bitcoin halving, a periodic event that reduces the reward for mining new blocks, is expected to occur in April 2020, which could increase the scarcity and value of the cryptocurrency.
The repayment could also coincide with the acceleration of inflows to exchange-traded funds (ETFs) that track the price of bitcoin, such as the Grayscale Bitcoin Trust (GBTC) and the Bitwise 10 Crypto Index Fund (BITW), which have seen a surge of institutional and retail investors in recent months. These funds could provide a more convenient and regulated way for investors to gain exposure to bitcoin, without having to deal with the risks and challenges of storing and transferring the digital asset.
The Mt. Gox saga has been one of the most notorious and controversial episodes in the history of bitcoin, and has left many customers frustrated and disillusioned with the crypto industry. The repayment, if successful, could offer some closure and relief to those who have been waiting for years to recover their funds, and could also restore some confidence and trust in the crypto ecosystem.
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