Published on: Jul 6, 2024Last update: Jul 6, 2024

Mt. Gox's $9 Billion Bitcoin Comeback: Customers See Funds After 10-Year Delay

Post thumbnail

Ten years after the collapse of Mt. Gox, the infamous Tokyo-based Bitcoin exchange, former customers are on the brink of recovering their lost assets. 

This long-awaited restitution marks a crucial milestone in the cryptocurrency world, with approximately $9 billion worth of Bitcoin set to be returned to creditors starting in July 2024.

The Fall of World’s Largest Bitcoin Exchange in 2024

In late February 2014, Mt. Gox, then the largest Bitcoin exchange handling 70% of global transactions, suddenly went offline. This shutdown is due to a massive security breach, which saw 850,000 BTC, valued at around $400 million at the time, disappear.

The CEO, Mark Karpelès, announced bankruptcy at that time and followed the procedures to close its operations. 

Long Road to Recover This Huge Amount Of Creditors

Initially, Mt. Gox followed a traditional bankruptcy process, which valued customer claims in Japanese yen based on Bitcoin's price in 2014. 

However, in 2018, this was converted to a civil rehabilitation process under Japanese law, allowing creditors to benefit from Bitcoin's dramatic price increase over the years

READ MORE : Solana Meme Coin DORAE Crashes 99% in Alleged Scam

Who was appointed to get back this payment of creditors from Mt. Gox

Nobuaki Kobayashi, the trustee managing of Mt. Gox estate confirmed that around 142,000 BTC and 143,000 BCH (Bitcoin Cash), along with 69 billion yen in fiat currency, will be distributed to creditors. 

This is  valued at approximately $9 billion, represents only about 15% of the total lost Bitcoin but far exceeds its original dollar value.

Popular Crypto Influencers Reaction On Mt. Gox Repayment: 

The famous Crypto Influencers predict increased volatility, with some fearing a potential drop in Bitcoin prices due to selling pressure. But, some thinks that it can stablilize the market once they absorbed. 

  • Prominent crypto influencer and educator Andreas Antonopoulos tweeted:

"The Mt. Gox repayments are a reminder of how far we've come in crypto security and exchange practices. It's bittersweet, but hopefully brings closure to many."

Some Customers Saying About this Bankruptcy & Repaying

For the thousands of Mt. Gox customers, this repayment process brings a mix of relief and caution.

"It's been a never-ending nightmare," says Michael, a U.S.-based customer who wished to remain anonymous. "My entire life has been in limbo for a decade."

Another customer put it, "It's been a marathon, and it still isn't finished. But at least now we can see the finish line."

The repayments represent a game-turner for some people. A Swedish customer, who was 17 when Mt. Gox collapsed, will receive $70,000 from his initial $2,000 investment.

Others view the repayments as a lifeline. One customer shared, "I'm about to lose my house. If they hurry up with the BTC payments, it will save my life."

Looking Ahead

As the repayments continue, the crypto world watches with interest. The effect of long-lost Bitcoin into the market could potentially impact prices, though experts are divided on the extent of this effect.

For the thousands of former Mt. Gox customers, the repayments represent the end of a long and stressful chapter. While the outcome isn't perfect, many are simply relieved to finally have some closure.

Disclaimer: CoinSoMuch does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read More....

author avatar
Coinsomuch staff

CoinSoMuch Staff is always here to guide you thoroughly on Cryptocurrency News and Tips, Airdrop Strategies, and Coin reports. You can ask us anytime and we would love to hear from you!


Subscribe to our newsletter

Get all the latest posts delivered straight to your inbox.

This is Coin So Much. A blog that covers Cryptocurrency tips, news, airdrop strategies and coin reports.


follow us

© 2024 CoinSoMuch. All rights reserved.