Mt. Gox, a defunct cryptocurrency exchange is to start civil rehabilitation proceedings to reimburse the victims of a cyber attack which took place in late 2013. Nobuaki Kobayashi, the bitcoin exchange civil rehabilitation trustee has sold off the bitcoin reserves in order to pay off the wronged customers.
Mt. Gox was a Tokyo based cryptocurrency exchange handling 70% of bitcoin transactions worldwide. A large-scale cyber attack caused the bitcoin’s nominal prices to be worth one cent leading to more than $8,75 million worth of bitcoins being transferred to the hacker’s account, this led the company to bankruptcy. In 2014, Mt. Gox completely stopped operating due to suspicious trading activity, resulting in customers losing around $473 million.
The selling of Mt. Gox’s bitcoin reserves didn’t go unnoticed as each transaction brought down the price of the bitcoin earlier this year. However, in light of the layoff of the bankruptcy proceedings, no more of the bitcoin reserves are going to be sold.
There is also good news for the creditors as they are set to receive bitcoins and not the initially intended fiat currency (JPY) as tweeted by Nakamura. However, creditors state that its still too early to celebrate, before everyone is paid out infull.
by Henry Addams