Failed Mt. Gox’s $9 Billion of Bitcoin Closer to Being Disbursed to Creditors

Olga Kharif, Bloomberg News

A neon Bitcoin cryptocurrency logo at a crypto exchange kiosk in Warsaw, Poland, on Thursday, March 14, 2024. Bitcoin extended a retreat from its latest record high amid an intensifying debate about whether the bull run in cryptocurrencies is evidence of speculative froth in global markets. Photographer: Damian Lemanski/Bloomberg , Bloomberg

(Bloomberg) -- Some creditors of the Mt. Gox crypto exchange said they received updates on their claims, indicating the officials winding up the platform are stepping up efforts to return a $9 billion Bitcoin hoard.

The updates included information such as the number of digital tokens to be returned and in some cases repayment dates, according to the creditors. Mt. Gox’s trustee didn’t immediately respond to an email seeking comment.

“This is the first time we’ve seen an update such as this on repayment status, which is a good sign and a step in the right direction,” said Brian Dixon, chief executive at Off the Chain Capital, which purchased Mt. Gox claims. Dixon said he received a repayment date but declined to disclose it.

Adam Back, chief executive at blockchain infrastructure provider Blockstream, said he received updates on tokens to be returned but is awaiting dates.

Once the world’s biggest Bitcoin exchange, Tokyo-based Mt. Gox was hacked in 2011 and went bankrupt in 2014. Last year, US prosecutors accused two Russian nationals of conspiring with others to break into the exchange’s servers.

The fallen platform holds about 137,892 Bitcoin worth $9.2 billion, according to Arkham Intelligence. Prior documents showed that Mt. Gox also held Bitcoin Cash and fiat money. Some of the fiat money has already been returned.

The trustee has said creditors should see base, intermediate and early lump-sum payments by Oct. 31 as the prolonged winding-up process progresses.

One key question is whether creditors will sell the tokens, pressuring Bitcoin. The largest digital asset was little changed at $66,710 as of 10:55 a.m. in Singapore on Tuesday, compared with a record high of $73,798 in mid-March. Bitcoin was worth a fraction of these amounts when Mt. Gox failed.