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Dormant bitcoin exchange Mount Gox pays $9 billion to creditors, closes six-year-old chapter



The Mount Gox, Tokyo, Japan-born bitcoin exchange suffered an unfortunate fate after losing 850,000 bitcoin tokens in a hack attack in 2014. Mount Gox has announced that it will return $9 billion (about Rs 67,531 crore) to customers who lost their money at the time, and has since bombarded the dormant company with legal notices and complaints. At the time of this hack attack, the stolen bitcoin was worth around $500 million (approximately Rs 3,751 crore), a value that has now multiplied and bitcoin is currently trading at $63,925 (about Rs 48 lakh) per token.

In an official announcement, Mount Gox Attorney-at-Law Nobuki Kobayashi revealed that creditors had approved distributing the stolen bitcoins to those who had suffered losses whenever they were recovered.

“Depending on the situation, the confirmation order is expected to be final and binding in approximately one month from today,” the announcement said.

The company will reach out to the respective former customers with detailed information regarding specific timings, procedures and repayment amount.

The cryptocurrency exchange platform was launched in 2010, just a year after the first bitcoin was mined by an anonymous person named Satoshi Nakamoto.

Soon after its launch, this Japanese exchange emerged as the “largest” bitcoin exchange in the world, said a report by news portal Coinbase.

Despite being able to recover 200,000 bitcoins in 2014, Mount Gox suffered major losses. The company resorted to filing for bankruptcy.

In March 2019, a Japanese court suspended the sentence of Mount Gox founder Marc Karpeles for four years, finding the French national guilty of data manipulation but acquitted of embezzlement charges.

Interested in cryptocurrency? We discuss all things Orbital with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.


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