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Mt.Gox Creditors Begin Receiving Repayments via PayPal in Yen

Creditors of the extinct Mt.Gox Bitcoin exchange started getting Japanese Yen repayments through PayPal, marking a significant step in the long-awaited reimbursement process.

Claudia Fischer

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Mt.Gox Creditors Begin Receiving Repayments via PayPal in Yen

Former Mt.Gox, the Bitcoin exchange, users have begun to get money. This decision comes a decade after the exchange’s demise. Mt.Gox suddenly terminated operations in 2014, leaving over 24,000 users without access to their Bitcoin money. This occurrence was widely publicized in the cryptocurrency community, generating severe worries about the security of digital asset exchanges.

For years, creditors of the fallen exchange have awaited some form of recovery from the disaster. Now, the long journey is reaching a pivotal chapter. Reports from various Mt.Gox creditors on online forums like Reddit indicate that reimbursements have commenced, with payments made in Japanese Yen directly to their PayPal accounts.

Reimbursement Process

In November 2023, several creditors received formal notifications from the Mt.Gox bankruptcy trustee. These letters confirmed the start of the reimbursement process, hinting that it might extend into the following year. However, given past delays and unfulfilled promises, many in the community met this latest development skeptically. Bloomberg analyst James Seyffart, for instance, expressed doubts, citing previous false starts in the reimbursement process.

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Despite the skepticism, numerous creditors on Reddit have confirmed receiving payments. Comments like “I just got paid” and “I just got money” indicate that the repayment process is underway. However, some recipients were initially wary, considering the possibility of a phishing scam.

Challenges and Uncertainties in the Repayment Scheme

The repayment process has not been without its complexities. One creditor, who held both Bitcoin (BTC) and Bitcoin Cash, reported receiving 30,283 yen for a claim involving both cryptocurrencies. This has left some wondering about the calculation methods used for reimbursement and whether further payments will follow.

Moreover, creditors who do not have PayPal accounts and have instead provided bank details to the bankruptcy trustee are still waiting for clarity. There is uncertainty about when and how their reimbursements will be processed.

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