A representative of the bankrupt cryptocurrency platform Mt. Gox has announced that certain creditors have received compensation in the form of digital assets.

In a recent statement, Mt. Gox trustee Nobuaki Kobayashi confirmed that some creditors have been reimbursed with Bitcoin (BTC) and Bitcoin Cash (BCH) as part of the company’s rehabilitation strategy. However, Kobayashi emphasized that not all creditors have been fully compensated yet and reassured that the remaining creditors will be addressed once specific criteria are met.

“On July 5, 2024, the Rehabilitation Trustee distributed Bitcoin and Bitcoin Cash to select rehabilitation creditors through designated cryptocurrency exchanges, following the guidelines of the Rehabilitation Plan. Repayments to the remaining rehabilitation creditors will be processed promptly upon meeting the following conditions:
(i) verification of registered accounts and related details;
(ii) agreement to the Agency Receipt Agreement by designated cryptocurrency exchanges;
(iii) finalization of discussions between the Rehabilitation Trustee and designated cryptocurrency exchanges regarding repayments; and
(iv) ensuring the secure and safe transfer of repayments. We kindly request eligible rehabilitation creditors to be patient during this process.”

Mt. Gox, once the largest Bitcoin exchange globally in the early 2010s, faced insolvency and lost a significant portion of its assets to theft.

Recently, CoinShares, a crypto asset management company, released a report suggesting that most Mt. Gox creditors are likely to hold onto their BTC. When they eventually decide to sell, it is anticipated that the sales will be staggered across various crypto exchanges such as Bitstamp, Kraken, Bitbank, BitGo, and SBI VC Trade, dampening the impact of simultaneous large sell-offs on the market.

“To prevent substantial market disruptions, the distributions will take place across multiple exchanges at different intervals throughout the month.”

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Featured Image: Shutterstock/Natalia Siiatovskaia