According to Reports, Mt. Gox Has Begun Repaying Certain Creditors Through Paypal

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Last Updated on December 27, 2023 by Bitfinsider

Following the trustee of the now-defunct bitcoin exchange’s announcement last month that it will soon be paying creditors back in cash, Mt. Gox looks to have begun paying back some of its debts.

Many users, who seemed to be creditors of the now-defunct bitcoin exchange, claimed in a Reddit thread that they received their Mt. Gox reimbursements through PayPal today. One user, Free-End2543, said, “I just got paid,” along with a screenshot of an email notification from PayPal.

“I received my first payment through Paypal just now! Another user, rpostwvu, said, “I was positive it was a phishing attempt on my email, but nope, legitimate money in JPY.” Several other users also shared similar comments on the social networking network.

A member of the “MtGoxCreditors” Telegram group chat attested that they received a payment on PayPal from the Mt. Gox trustee on December 25 in Japanese yen.

The exchange, which failed in 2014, stated in an email to creditors last month that the rehabilitation trustee is “making efforts to commence repayments in cash within the 2023 calendar year”—this is the reason behind the alleged repayments. Nonetheless, the trustee stated that because there are numerous creditors involved in the rehabilitation, repayments would probably “continue into 2024.”

The rehabilitation creditor repayment date was extended by Mt. Gox in September, moving it forward from October 31, 2023, to October 31, 2024.

After its launch in 2010, the Tokyo-based platform gained traction and by 2013 was handling 70% of all bitcoin deals globally, making it the largest bitcoin exchange. However, when the company halted trading in the beginning of 2014, all withdrawals were halted. After losing more than 800,000 bitcoins, the company filed for bankruptcy protection and the website shortly went dark.

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