Cryptocurrency exchange Bitstamp has announced that assets credited to creditors of the Mt. Gox Bitcoin exchange are now fully accessible following the completion of security checks. Repayments to the 20,000 former users of Mt. Gox began on July 25, with users receiving their funds in Bitcoin and Bitcoin Cash. Users who selected Bitstamp as their exchange will have their restored assets delivered to their Bitstamp accounts, with full control expected within a week. Many recipients are expected to see gains due to the increase in Bitcoin value since the Mt. Gox collapse.
Bitstamp CEO Jean-Baptiste Graftieaux emphasized the importance of making Mt. Gox investors whole and highlighted the profitability many will experience due to the increase in Bitcoin value. However, users in the UK will have to wait a few more months before receiving their assets. Other exchanges such as Kraken have also completed repayments to Mt. Gox creditors to help alleviate the sell pressure on Bitcoin resulting from the long-awaited repayments.
Mt. Gox creditors have been waiting for over a decade to receive their funds, with over $9.4 billion worth of Bitcoin owed to approximately 127,000 creditors. The repayment process is expected to relieve some of the potential sell pressure on Bitcoin. Mt. Gox transferred billions of BTC assets to Bitstamp and Kraken as part of its redistribution process, with Bitstamp already redistributing funds and Kraken completing its part. The redistribution process began in early July, but analysts suggest that the Bitcoin price has not been significantly affected as expected.
Mt. Gox, which was responsible for 70% of Bitcoin transactions at its peak, began to experience problems in early 2014 before suspending all trading activities and filing for bankruptcy later that year. Investigations revealed that the exchange had been insolvent prior to its collapse, with large amounts of Bitcoin missing due to security vulnerabilities and poor management. Individuals impacted by the 2014 hacking incident have been waiting for a decade for compensation, with repayments of Bitcoin and Bitcoin Cash finally commencing in July 2024 with a total value of approximately $9 billion in Bitcoin and $55 million in Bitcoin Cash.
Bitstamp received over $657 million in BTC from Mt. Gox, with the redistribution process including significant on-chain activities but with minimal impact on Bitcoin price. The completion of repayments by exchanges like Bitstamp and Kraken is significant for Mt. Gox creditors who have been waiting for funds for over a decade. The commencement of repayments in July 2024 marks a milestone for creditors of the failed exchange, with many expected to realize gains due to the increase in Bitcoin value since the 2014 collapse of Mt. Gox.
