Mt. Gox, the Japanese bitcoin exchange that faced bankruptcy a decade ago following a major hack, is finally poised to repay its creditors. This long-awaited payout will distribute approximately $9 billion worth of bitcoin, rewarding those who have patiently awaited resolution since the exchange’s collapse.

The Mt. Gox Saga

In 2011, Mt. Gox suffered a devastating hack that resulted in the loss of up to 950,000 bitcoins. At the time, bitcoin’s value was significantly lower than it is today. However, around 140,000 of those lost bitcoins were later recovered. Now, with bitcoin’s skyrocketing value, these recovered coins are worth a staggering $9 billion.

Bitcoin payout

Creditors’ Windfall

The creditors, who have endured years of uncertainty, are in for a significant payday. Among them is Gregory Greene from the US, who filed a class action lawsuit against Mt. Gox and its former CEO after the exchange declared bankruptcy in February 2014. Greene’s account, which originally held $25,000 worth of bitcoin, is now potentially worth around $2.5 million due to bitcoin’s exponential growth.

Mt. Gox: A Brief History

Mt. Gox, an acronym for “Magic: The Gathering Online Exchange,” was once the largest bitcoin exchange globally, handling around 80% of all global dollar trades for bitcoin at its peak. However, a series of heists led to its downfall, attributed to a bug in bitcoin’s framework. This bug allowed hackers to move bitcoins out of user accounts while displaying incomplete transaction messages.

Payout Details

The payouts to creditors will be a mix of bitcoin and bitcoin cash, an early offshoot of the original cryptocurrency. Many prominent figures in the bitcoin world are among the claimants, including early investor Roger Ver, Blockstream co-founders Adam Back and Greg Maxwell, and Bruce Fenton, former executive director of the Bitcoin Foundation.

As Mt. Gox prepares to distribute the long-awaited bitcoin payouts, the crypto community watches closely. This historic event marks a significant chapter in the evolution of the cryptocurrency industry.

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