In a significant milestone towards closure for the victims of the infamous 2014 Mt. Gox hack, crypto exchange Bitstamp has announced that it has initiated the process of returning recovered digital assets to creditors. This marks a long-awaited step towards reimbursing those affected by one of the most devastating incidents in the history of cryptocurrency.
Bitstamp is collaborating with the trustee along with four other exchanges, including Kraken, to facilitate the return of digital assets to creditors. Kraken, in a recent announcement on July 24, revealed that it has successfully completed the restitution process for its users. Bitstamp, on the other hand, has plans to distribute Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH) received from the Mt. Gox trustees to Bitstamp customers starting July 25.
Through the diligent completion of necessary security checks, recipients are expected to gain full control of their assets within a week of distribution. While UK customers might not be included in the initial tranche of distributions, they can anticipate the receipt of their restored assets in the following months. Bitstamp has promised to keep UK customers informed as the restitution process progresses.
Bitstamp’s global CEO, Jean-Baptiste Graftieaux, expressed pride in the exchange’s role in facilitating the restitution process. He also pointed out the remarkable growth of Bitcoin since the Mt. Gox hack. Despite the initial turmoil created by the hack, the surge in Bitcoin’s value over the years signifies its resilience and long-term potential. Graftieaux highlighted the fact that many Mt. Gox investors, who were once unable to access their tokens, stand a chance to make substantial profits due to Bitcoin’s exponential growth.
The collapse of the Mt. Gox exchange in 2014, when Bitcoin was trading at around $600 per coin, left approximately 20,000 former users in a state of uncertainty. Fast forward to the present day, with Bitcoin’s value hovering around $66,000 per coin, these users are on the brink of witnessing substantial returns. The restitution process is set to distribute over $9 billion worth of Bitcoin, Bitcoin Cash, and Ethereum to the affected creditors.
Mt. Gox, which dominated the Bitcoin transaction scene from 2010 to 2014, accounting for more than 70% of all Bitcoin transactions at its peak, was forced to halt withdrawals in February 2014 after discovering suspicious activities in its digital wallets. This led to the eventual declaration of bankruptcy and left a scar on the cryptocurrency industry that is still felt to this day.