Bitstamp Crypto Exchange has begun repaying Bitcoin to the Mt. Gox creditors. This development marks an end to over ten years of waiting since one of the largest crypto exchange hacks in history.
Bitcoin Reparations Begin
On July 25, Bitstamp announced it had received from the trustee all the funds owed to Mt. Gox creditors, including Bitcoin, Bitcoin Cash, and Ethereum.
We’re pleased to announce that we’ve received the Mt. Gox assets. We’re working diligently to distribute them to our Bitstamp customers who are Mt. Gox creditors. Please allow up to one week for security checks. We’ll inform you when the transfer is finalized. Thank you for your…
— Bitstamp (@Bitstamp) July 24, 2024
The exchange has promptly started the repayment process. The recipients are expected to gain full control of their assets within a week.
Jean-Baptiste Graftieaux, Bitstamp’s global CEO spoke on the importance of this moment. He noted that while the Mt. Gox incident should never have occurred, Bitcoin’s price appreciation since then underscores BTC’s rising value.
He also stated that many creditors may find themselves in a profitable position due to Bitcoin’s substantial price increase over the years.
The repayment process involves approximately 127,000 Mt. Gox creditors who are owed over $9.4 billion worth of Bitcoin. This large-scale distribution has raised concerns about potential selling pressure on the Bitcoin market.
However, not all creditors will receive their funds immediately. Bitstamp has announced that UK-based customers will face a delay of several months before receiving their assets. The exchange has promised to provide more information to affected UK customers in due course.
As Bitstamp moves forward with its repayments, other exchanges are also contributing. Kraken, another major crypto exchange, completed its repayments to Mt. Gox creditors on July 24, according to CEO Dave Ripey.
1/ @krakenfx has successfully distributed #Bitcoin and Bitcoin Cash from the @mtgox estate back to creditors.
It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds. It was our privilege and it was our duty. pic.twitter.com/ptKexzN4gm
— Dave Ripley (@DavidLRipley) July 23, 2024
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