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.
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.
Eva Lane is a dedicated crypto news writer at Crypto Quill, with a keen eye for emerging trends and developments in the world of cryptocurrency. Passionate about blockchain technology and digital currencies, Eva’s articles provide readers with timely and informative insights into the dynamic realm of crypto. With a knack for thorough research and clear communication, Eva delivers engaging content that keeps audiences informed and engaged. Count on Eva to unravel the complexities of the crypto world and bring you the latest news and analysis with precision and expertise.