Crypto exchange Bitstamp announced it has begun the process of returning recovered digital assets to creditors of the defunct Mt. Gox exchange.
The development marks a significant milestone in a decade-long effort to reimburse those affected by the infamous 2014 hack that led to Mt. Gox’s collapse.
Bitstamp is one of five exchanges, including Kraken, working with the trustee to return digital assets to creditors. Kraken said on July 24 that it has completed the restitution process for its users.
Reimbursement process
Bitstamp said it will distribute Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH) received from the Mt. Gox trustees to Bitstamp customers starting July 25. Following the completion of necessary security checks, the recipients will gain full control of their assets within a week.
While the first tranche of distributions will not include UK customers, they can expect to receive their restored assets in the coming months. Bitstamp has assured that more information will be provided to UK customers as the process unfolds.
Bitstamp global CEO Jean-Baptiste Graftieaux expressed pride in the exchange’s role in facilitating the restitution process and highlighted the explosive growth of Bitcoin since the hack. He said:
“It’s a testament to Bitcoin’s value as an asset that, although the Mt. Gox investors should never have been unable to access their tokens, many will make a serious profit.”
The Mt. Gox collapse, which saw Bitcoin trading at around $600 per coin at the time, left approximately 20,000 former users in limbo.
Now, with Bitcoin currently valued at roughly $66,000 per coin, many of these users stand to see substantial returns. Over $9 billion worth of Bitcoin, Bitcoin Cash, and Ethereum are set to be distributed as part of the restitution process.
The Mt. Gox exchange, which operated from 2010 to 2014, was responsible for more than 70% of Bitcoin transactions at its peak. The exchange was forced to suspend withdrawals in February 2014 after discovering suspicious activity in its digital wallets. It subsequently declared bankruptcy.
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