0.676% of all bitcoins in the world will be returned to customers of the cryptocurrency exchange hacked by hackers

Two of the largest creditors of the cryptocurrency exchange Mt. Gox, which collapsed due to a hacker attack in 2014, have decided to receive most of their losses in Cryptocurrency rather than fiat currency. The information was reported by CoinDesk journalists, citing sources familiar with the matter.

The exchange’s management has repeatedly stated its desire to start paying out to affected investors and resume its operations. In October 2021, Mt. Gox asset manager Nobuyaki Kobayashi approved a compensation plan approved by former users of the platform.

According to Kobayashi’s plan, creditors can receive an early lump sum payment of 90% of the desired amount. Another option involves waiting for the end of the bankruptcy process with the hope of receiving a full refund.

The New Zealand crypto exchange Bitcoinica, which ceased operations in 2012, and the MtGox Investment Funds (MGIF), which accounts for about 20% of all claims against Mt. Gox, chose the first option. They are the largest creditors of Mt.Gox. Bitcoinica and MGIF users will receive 90% of their funds blocked on the exchange back in 2014.

According to CoinDesk analysts, the agreement of Mt. Gox’s two largest creditors to receive payments in bitcoin rather than fiat has come as a relief to the crypto market, as a wave of simultaneous withdrawals of BTC could have crashed the price of bitcoin. As of July 2022, Nobuyaki Kobayashi had approximately 142,000 BTC in his possession.

Analysts believe that Mt. Gox bankruptcy proceedings may take another five to nine years. At the same time, creditors have no guarantee that the compensation received will be higher or equal to 90%.

As a reminder, Mt. Gox is the oldest cryptocurrency exchange that lost more than 850,000 BTC as a result of a hack in 2014. Ten years later, in November 2021, the exchange released a «Rehabilitation Plan» to return about 137,000 BTC to investors. Representatives of Mt. Gox representatives are waiting for applications for the return of BTC until March 10, 2023 (previously it was January 10), after which former customers who did not submit an application will no longer be able to receive compensation.