Mt. Gox Initiates Repayment Process for PayPal Linked to 2014 Bitcoin Hack
Bank account payments for the victims of the infamous Mt. Gox cryptocurrency exchange hack are still pending, marking a pivotal moment almost ten years after the significant security breach. The exchange, which fell victim to a massive cyber attack in 2014, is now seemingly initiating the process of repaying users who lost a staggering 850,000 bitcoins, currently valued at approximately $36 billion.
Reports from members of the mtgoxinsolvency subreddit indicate that some individuals have received payouts in yen through PayPal. However, those who chose to receive their restitution via cash deposits into their bank accounts are still awaiting any signs of incoming funds. This discrepancy in payment methods adds a layer of complexity to the ongoing compensation process.
Established in 2010, Mt. Gox was once the largest cryptocurrency exchange globally, dominating the market until the cyber attack in 2014 compromised its security. Despite efforts, the exchange could only recover about 20% of the stolen assets, leaving a significant portion unaccounted for.
Earlier this year, Mt. Gox made a significant announcement by extending the repayment deadline by an additional 12 months, setting the new deadline for October 2024. This move aimed to provide the exchange with more time to navigate the complexities of repaying the victims.
While the initiation of repayments is a positive development, concerns linger regarding the impact on the cryptocurrency market. With a substantial volume of tokens set to be released during the repayment process, there is speculation about potential repercussions on Bitcoin prices. However, a report from UBS earlier this year offered reassurance, suggesting that the release of these tokens would not destabilize the overall market.
As Mt. Gox embarks on the challenging journey of compensating those affected by the 2014 breach, the cryptocurrency community watches closely, anticipating not only financial restitution for victims but also the potential market dynamics influenced by this long-awaited repayment process.