Mt. Gox Hack Victims to Finally Get Their Stolen Bitcoin Back Starting July 2024

Mt. Gox will begin repaying users affected by its infamous failure to store assets safely starting the first week of July.

Mt. Gox users to begin receiving stolen BTC, BCH assets in early July

Mt. Gox users will finally start receiving their stolen BTC and BCH assets in the first week of July, according to the defunct exchange’s trustee.

The long-awaited repayments will be made to users who filed for claims in the exchange’s bankruptcy proceedings. Mt. Gox users lost 809,000 bitcoins in a series of hacks that targeted the exchange over two years. The attacks went unnoticed until the exchange halted withdrawals in 2014.

Mt. Gox’s trustee, Nobuaki Kobayashi, said in a statement that “the repayments will be made from the beginning of July 2024.” The trustee also stated that the repayments will be made in BTC and BCH (Bitcoin Cash).

The exchange’s bankruptcy estate, which is handling the repayments, disclosed in 2023 that those who filed for claims would receive their funds by October 2024. At its peak, the exchange handled over 70% of all BTC transactions. But its reputation was quickly destroyed as hackers ransacked the exchange due to its poor controls.

Mt. Gox stored all the assets under its management in hot wallets, which was a clear recipe for disaster. The exchange’s hot wallets were attacked multiple times, with attackers slowly siphoning off bitcoins over a long period.

Mt. Gox will return 140,000 bitcoins to its creditors, which is now worth about $15 billion—a huge increase from the collective value of the BTC stolen from the exchange back in the day. Back then, BTC was still trading at about $1,000. It has since risen to over $60,000 and even crossed $70,000 earlier this month.

The news of the repayments caused BTC’s price to briefly dip below $61,000 on Friday. As this large amount of BTC returns to circulation, the asset’s price is expected to drop.

Traders widely expect that the returning BTC will be sold by its creditors, at least in part, to capitalize on BTC’s price appreciation over the years—something they were deprived of due to the exchange’s failure.

News source：https://www.kdj.com/cryptocurrencies-news/articles/mt-gox-hack-victims-finally-stolen-bitcoin-starting-july.html

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