Mt. Gox: The Rise and Fall of the World's Largest Bitcoin Exchange

Mt. Gox — short for “Magic: The Gathering Online Exchange” was one of the earliest cryptocurrency exchanges in the crypto world.

Defunct cryptocurrency exchange Mt. Gox has announced its latest repayment plan for creditors, finally set to begin distributing the remaining Bitcoin (BTC) and Bitcoin Cash (BCH) holdings.

As part of the plan, Mt. Gox will be distributing BTC and BCH held in the exchange’s estate as of April 26, 2024. Creditors will be able to choose between receiving their allocated BTC or BCH directly or opt to have them sold by the exchange. The proceeds from any sales will then be distributed to the creditors.

The exchange noted that the precise timing of the repayments will vary depending on the chosen withdrawal method. For instance, withdrawals to Kraken will take roughly 90 days to be processed, while those to Bitstamp will take approximately 60 days.

Meanwhile, creditors who choose to withdraw their BTC or BCH directly from Mt. Gox will face varying waiting periods. Those withdrawing BTC will have to wait an additional three months before receiving their funds, while BCH withdrawals will be processed immediately.

Mt. Gox’s latest announcement comes after the exchange applied for bankruptcy in 2014 following the discovery of a massive BTC theft. At the time, Mt. Gox was handling up to 80% of the global BTC trades.

Initially reporting the loss of 750,000 BTC, later investigations revealed that the exchange had been insolvent for two years prior to its bankruptcy. Eventually, a trustee was appointed to oversee the bankruptcy proceedings and begin the process of repaying creditors.

Over the years, several proposals for creditor compensation were put forward and ultimately rejected by the creditors. Finally, in October 2021, a rehabilitation plan was approved by the Tokyo District Court and the creditors, paving the way for the upcoming repayments.