In a significant development for the creditors of the now-defunct Bitcoin exchange, Mt. Gox, an email from the estate’s trustee, Nobuaki Kobayashi, has sparked renewed hope for repayments to those affected by the infamous 2014 hack.
Multiple reports on social media indicate that on November 21, Kobayashi initiated communication with rehabilitation creditors, disclosing plans to commence repayments. The trustee outlined that the initial repayments in cash are expected to begin in 2023, with a continuation into 2024. Despite the lack of specific timings for individual repayments, Kobayashi emphasized the complexities involved, stating:
“Due to the large number of rehabilitation creditors who will receive repayment, the varying types of repayments, the different preparation and processing times required to make the repayment, repayments will continue into 2024.”
The announcement coincided with the release of an official statement on November 22, revealing that the rehabilitation trustee received the redemption of 7 billion Japanese yen ($47 million). This funding is earmarked for the repayment of claims, leaving the trust assets at approximately 8.8 billion yen, equivalent to around $59 million.
“The rehabilitation trustee will continue preparations to make the base repayment, early lump-sum repayment, and the intermediate repayment,” the statement noted.
While reactions within the Mt. Gox community have been largely optimistic, with some describing the email as “cautiously promising” and a sign that things are “finally happening,” concerns have been raised regarding the nature of repayments. Notably, the email exclusively mentioned cash payments, leaving some victims anticipating the return of significant amounts of Bitcoin.
In light of these developments, discussions within the community have touched upon the recent legal action against Kraken by the United States Securities and Exchange Commission (SEC) on November 21.
Kraken, a major crypto exchange, has played a substantial role in the repayment process for Mt. Gox hack victims. Some members have expressed fears about potential complications if Kraken were to face challenges or collapse before finalizing the Mt. Gox coin repayments.
Despite the prevailing optimism, a degree of skepticism remains among observers due to the protracted history of delays and setbacks in the Mt. Gox repayment saga. The trustee had initially set a deadline for repayments by the end of October 2023, but in September 2023, officially pushed the timeline to October 2024. As the community eagerly awaits further developments, the specter of past disappointments looms large over the prospects of a successful resolution for Mt. Gox creditors.