A trustee overseeing the defunct cryptocurrency exchange Mt. Gox has reported that certain creditors have been compensated with digital assets. In a recent announcement, Nobuaki Kobayashi, the trustee, stated that some creditors of Mt. Gox have received reimbursements in Bitcoin (BTC) and Bitcoin Cash (BCH) as part of the company’s rehabilitation plan. However, Kobayashi pointed out that not all creditors have been settled, noting that further distributions will occur once specific conditions are met.

“On July 5, 2024, the Rehabilitation Trustee made repayments in Bitcoin and Bitcoin Cash to certain rehabilitation creditors through designated cryptocurrency exchanges, as outlined in the Rehabilitation Plan. Repayments to other rehabilitation creditors will be processed once the following conditions are fulfilled: (i) validation of registered accounts and related matters; (ii) acceptance of the Agency Receipt Agreement by designated cryptocurrency exchanges; (iii) completion of discussions between the Rehabilitation Trustee and designated cryptocurrency exchanges regarding repayments; and (iv) confirmation of secure and safe repayment capabilities. We kindly request eligible rehabilitation creditors to await further instructions.”

Mt. Gox was once the world’s largest BTC exchange in the early 2010s before it declared bankruptcy, losing most of its tokens due to theft. Recently, CoinShares, a crypto asset management firm, released a report suggesting that most Mt. Gox creditors are likely to hold onto their BTC, with any future sales expected to be spread across various crypto exchanges. This distribution strategy aims to mitigate potential downward pressure on prices caused by large simultaneous sales.

“The distributions will take place across multiple exchanges including Bitstamp, Kraken, Bitbank, BitGo, SBI VC Trade, and others, spread out over different dates throughout the month, thereby reducing the impact of significant simultaneous selling.”

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