Mt. Gox to Return $1 Billion Lost in Cryptocurrency to Users

Karan Balwani

August 25, 2018 11:29 am

Crypto Hack

Mt. Gox to Return $1 Billion Lost in Cryptocurrency to Users
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The Mt. Gox scandal is hailed to be one of the biggest scams in the cryptocurrency world. Mt. Gox is a Bitcoin exchange based out of Shibuya, Tokyo, Japan.

The exchange was launched back in July 2010 and by 2014, it was responsible for handling more than 70 percent of all Bitcoin (BTC) transactions globally, making it the largest crypto exchange of its time.

In early 2014, the exchange stopped trading and shut down its website and services. The company also filed for bankruptcy protection from its creditors. 

The company further announced that around 850,000 Bitcoins that belonged to its customers were missing and were most likely stolen. The total loss is expected to be $450 million at the time. A few weeks after this incident, the company found 200,000 Bitcoins which it proceeded to sell when the price was at its peak. Many investors regard this as the reason for the substantial price drop in Bitcoin’s value.

Recently, a press release was posted on Mt. Gox’s website, announcing that the individuals who lost their money as a result of the security breach. Note that corporate creditors will be eligible for filing claims at a later date.

The company created an online tool for submitting claims for the unfortunate users who had lost their cryptocurrencies five years ago. Claims can also be made via post.

The last date for filing claims is October 22. The company has said that claims will be analyzed and redistributed by February 2019 from the remainder of Mt. Gox’s assets.

Mark Karpelès, Mt. Gox chief has expressed his regret over the length of the process through an Ask Me Anything (AMA) session early in 2018. The chief is facing trial as a result of accusations of embezzlement and data manipulation.

Five years is an incredibly long time to get back one’s stolen money. Still, users are happy that at least they are getting their funds back, one way or another.

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