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Mt. Gox, a former bitcoin exchange, is repaying creditors $9 billion in bitcoin.
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The exchange went bankrupt in 2014 after a major hack.
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Creditors will receive a mix of bitcoin and bitcoin cash.
Mt. Gox, once the largest bitcoin exchange in the world, is finally repaying its creditors after a decade. The exchange lost 950,000 bitcoins in a hack in 2011, but recovered 140,000 of them. These recovered bitcoins are now worth $9 billion, a significant increase from their original value. Creditors, including prominent figures in the bitcoin world, will receive a mix of bitcoin and bitcoin cash as repayment.
The repayment comes after Mt. Gox filed for bankruptcy in 2014, following a series of hacks that drained user accounts. The exchange attributed the hacks to a bug in bitcoin’s framework. The payouts, starting in July, will reward creditors for their patience over the years. While the exact amount each creditor will receive is unclear, some claimants stand to gain millions from the repayment.
This development marks a significant milestone in the history of cryptocurrency, highlighting the growth and resilience of the industry. As the first major bitcoin exchange to go bankrupt, Mt. Gox’s repayment sets a precedent for future cases. With the value of bitcoin continuing to fluctuate, the repayment is a welcome development for creditors and a reminder of the potential rewards and risks in the cryptocurrency market.
