Mt.Gox victims to receive compensation in the amount of $9 billion in Bitcoin equivalent
Almost a decade after one of the most iconic hacks in the cryptocurrency industry, the Mt.Gox exchange, its lenders will be able to receive compensation for the billions of dollars in Bitcoin equivalent spent on the platform.
Today, the defunct Mt.Gox was once responsible for processing 70% of all global transactions involving the main cryptocurrency on the market. However, in February 2014, a scandalous hack broke out, during which hackers managed to steal 850,000 BTC. Of these, only 200,000 BTC were returned. The incident brought down the value of the crypto asset at that time from $800 to $400. As a result of the actions of the cybercriminals, more than 24,000 creditors have suffered, and the amount of losses at the time of this writing is estimated at approximately $56 billion at the current value of Bitcoin.
The trustee of the crypto exchange Nobuaki Kobayashi expressed gratitude to all parties involved in the incident for their understanding and support, and the exchange representatives themselves submitted a document on the rehabilitation plan to the Tokyo District Court. Therefore, soon the victims of the hack will be returned the lost Bitcoins in the amount of 9 billion.
99% of the victims of the burglary voted for the decision to return the amount under the rehabilitation plan, despite the fact that the plan itself was made public in February 2021. The Tokyo District Court ruled on the case on the same day the official documents were filed, but waiting for the start of the refund operation can take up to one month, according to trustee Mt.Gox.
Once the refund is approved, creditors will need to register their own bank accounts with the Mt.Gox online system, after which they will be able to recover the cryptocurrency losses. Kobayashi also noted that the transfer of funds to investors, for whom logging into the exchange system would be problematic, could be delayed.
Avi Felman, portfolio manager of BlockTower Capital, said that the day of the return of funds to depositors of Mt.Gox could lead Bitcoin to even more volatility and "overheating", marking a "local top" for the asset. He attributed this to the fact that holders who were waiting for their Bitcoins will be able to fix profits on “frozen” positions.
Of course, “dumping” assets into the market can cause a slight price shock for traders, but in reality, the market is likely to breathe a sigh of relief given the fact that one of the most traumatic episodes in Bitcoin history will finally be over.
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