Bitstamp Begins Returning Recovered Mt. Gox Assets to Creditors

Bitstamp, a prominent crypto exchange, has announced that it has initiated the process of returning recovered digital assets to creditors of the defunct Mt. Gox exchange. This development signifies a significant milestone in the decade-long efforts to reimburse those affected by the infamous 2014 hack that ultimately led to Mt. Gox’s collapse.

Collaboration with Trustee

Bitstamp is collaborating with the trustee, along with four other exchanges including Kraken, to facilitate the return of digital assets to creditors. Kraken recently announced the completion of the restitution process for its users, setting a positive precedent for Bitstamp’s upcoming distributions.

Bitstamp plans to distribute Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH) received from the Mt. Gox trustees to Bitstamp customers beginning on July 25th. After undergoing necessary security checks, recipients will gain full control of their assets within a week. While the initial distributions exclude UK customers, they can expect to receive their restored assets in the following months. Bitstamp has promised to provide more information to UK customers as the process unfolds.

Bitstamp’s global CEO, Jean-Baptiste Graftieaux, expressed pride in the exchange’s role in facilitating the restitution process. He emphasized the remarkable growth of Bitcoin since the Mt. Gox hack, highlighting Bitcoin’s value as an asset. Graftieaux noted that while Mt. Gox investors should never have been deprived of accessing their tokens, many are likely to generate significant profits from the restored assets.

The Mt. Gox collapse in 2014 left an approximate 20,000 former users in a state of uncertainty. However, with Bitcoin currently valued at around $66,000 per coin, these users now stand to receive substantial returns. Over $9 billion worth of Bitcoin, Bitcoin Cash, and Ethereum are poised to be distributed as part of the restitution process. Mt. Gox, which accounted for over 70% of Bitcoin transactions at its peak, was compelled to halt withdrawals in February 2014 following the discovery of suspicious activities in its digital wallets, ultimately leading to its declaration of bankruptcy.