Top Mt.Gox creditors opt for Bitcoin payout: report

Top Mt.Gox creditors opt for Bitcoin payout: report

By Benson Toti - min read
  • Mt.Gox Investment Fund and Bitcoinica reportedly want reimbursement from the Mt.Gox Trustee to be in Bitcoin.
  • The two firms are two of the largest creditors of Mt.Gox, a Bitcoin exchange that went bankrupt in 2014.
  • A reimbursement program for all creditors indicates payouts will begin on 30 September 2023.

Mt. Gox creditors have waited nearly a decade for reimbursement payouts following the collapse of one of Bitcoin’s earliest and (by then) largest exchanges.

But now with the rehabilitation process drawing towards a close, two of the defunct crypto exchange’s largest creditors have opted for a payout in bitcoin.

Mt.Gox Investment Fund opts for BTC payout

According to a news report by Bloomberg, Mt. Gox Investment Fund, which is the largest creditor of the defunct Bitcoin exchange, has settled for a payout in Bitcoin. Another top creditor looking to recover their funds in BTC is Bitcoinica, a crypto platform that also went bankrupt following multiple hacks.

Creditors agreed to the reimbursement program in October 2021, and are currently updating their payout details as they pick payment options.  

Earlier this year, Mt.Gox Trustee Nobuaki Kobayashi notified creditors that the court had allowed them to push the deadline for registration of payee information to 10 March 2023. Repayments, which are expected in cryptocurrency or fiat are set to begin on 30 September.

Both Mt.Gox Investment Fund and Bitcoinica have opted to receive 90% of the repayments in BTC, according to the report. The two creditors will get paid in September.

What does this mean for BTC?

The move is largely positive for Bitcoin as receiving the payments in the cryptocurrency significantly reduces the impact of a dump if the Trustee had to liquidate the coins in order to pay in fiat. 

Bitcoin price rose to highs above $25k this week as the crypto market sentiment ticked up despite US regulators’ latest actions. On Friday (11:00 am ET), BTC pushed above $24k once again following an earlier dip to lows of $23,300.