Some creditors of the defunct crypto exchange Mt. Gox have received more than they were supposed to due to a system error, according to a report by Cointelegraph. The trustee overseeing the repayment process has asked the overpaid creditors to return the excess funds as soon as possible.
Mt. Gox was once the largest Bitcoin exchange in the world, handling over 70% of all Bitcoin transactions. However, in 2014, the exchange suffered a massive hack that resulted in the loss of 850,000 BTC, worth about $460 million at the time. The exchange filed for bankruptcy and entered a long and complex legal process to reimburse its creditors.
After nearly a decade of waiting, the creditors of Mt. Gox finally approved a rehabilitation plan in October 2021, which outlined the terms and conditions for the repayment of their claims. According to the plan, the creditors would receive a portion of their funds in cash, Bitcoin, and Bitcoin Cash, depending on their preference.
The trustee, Nobuaki Kobayashi, announced that he would start the repayment process in November 2021, and that he expected to complete it by the end of 2024. He also asked the creditors to register their bank account information on a designated website to receive their payments.
Mt. Gox’s System Error Leads to Overpayment
However, according to a report by Cointelegraph, some creditors of Mt. Gox have received more than they were supposed to due to a system error. The report cited an email from the trustee, which stated that the error occurred during the verification process of the bank account information, and that some creditors received duplicate payments or payments that exceeded their claim amount.
The trustee apologized for the inconvenience and asked the overpaid creditors to return the excess funds as soon as possible. He also warned that if the funds were not returned, he would take legal action to recover them. He added that the error did not affect the repayment of other creditors, and that he would continue to make efforts to complete the repayment process as soon as possible.
Mt. Gox’s Impact on the Crypto Industry
The Mt. Gox hack was one of the most devastating events in the history of the crypto industry, as it shook the confidence of many investors and users in the security and reliability of crypto exchanges. The hack also triggered a regulatory crackdown on the crypto sector in Japan and other countries, as authorities sought to protect consumers and prevent money laundering and other illicit activities.
However, the Mt. Gox hack also served as a catalyst for innovation and improvement in the crypto industry, as it prompted the development of more robust and transparent security and governance standards for crypto exchanges and custodians. The hack also inspired the creation of new solutions and platforms for crypto asset recovery and insurance, such as Chainalysis, CipherTrace, and Coincover.
The Mt. Gox repayment process is seen as a milestone for the crypto industry, as it represents the closure of one of the most notorious and long-standing cases of crypto theft and loss. The repayment process also demonstrates the resilience and persistence of the crypto community, as many creditors have remained loyal and hopeful despite the lengthy and uncertain legal process.