Mt. Gox Begins $9 Billion Bitcoin and Bitcoin Cash Refunds
Mt. Gox, once the world’s largest cryptocurrency exchange, has announced that it has begun refunding nearly $9 billion in Bitcoin to its clients, putting an end to a nearly ten-year wait for some users hoping to recover their lost BTC following a 2014 hack.
This announcement comes after Mt. Gox indicated last month its intention to start refunds in July.
History of Mt. Gox
Mt. Gox was a major player in the early years of cryptocurrency, handling over 70% of all Bitcoin transactions. The 2014 hack resulted in an estimated loss of 740,000 bitcoins, plunging the exchange into bankruptcy. Since then, users have eagerly awaited the refund of their lost assets, marking a tumultuous chapter in crypto history.
Impact on the Crypto Market
Mt. Gox’s announcement has added further selling pressure on Bitcoin and the crypto market. Bitcoin plunged to $53,600, its lowest level in five months. This freefall led to the liquidation of over $580 million in long positions.
Repayment Timeline for Clients
While some clients may have to wait between 60 and 90 days to receive their payments, former exchange CEO Mark Karpeles states that these timelines represent worst-case scenarios. These delays are tied to the number of transfers being processed, with each exchange having slightly different internal policies and deciding to credit everyone earlier or later.
The exchanges approved by the trustee to handle the refunds include Bitbank, BitGo, Bitstamp, Kraken, and SBI VC Trade, a Japanese exchange. These platforms are responsible for ensuring that users receive their funds safely and efficiently.
