Mt. Gox Creditors See More Payouts as Bitstamp Distributes BTC

More of the exchangeโ€™s creditors have received settlements from Bitstamp, while others remain in the waiting game.

Businessman pointing at bitcoins getting sucked into a black hole in space.
Created by Kornelija Poderskytฤ— from DailyCoin
  • Another set of Mt. Gox creditors has received good news.
  • The exchangeโ€™s settlement process is ongoing.
  • Crypto exchange Bitstamp has released a statement.

The present week has been marked with a wave of positivity for Mt. Gox, the defunct crypto exchange on a journey to restore the funds lost by creditors following its collapse in February 2014. On July 23, 2024, several creditors celebrated the receipt of their claims, marking the end of a decade-long wait

While the celebrations were primarily concentrated among creditors, another set has emerged with more good news.

Bitstamp Rolls Out Mt. Gox BTC Settlement

Following Kraken’s distribution of Bitcoin and Bitcoin Cash payments to Mt. Gox creditors earlier this week, Bitstamp, another exchange designated to handle the ongoing settlement, has completed its portion of the distribution.

Sponsored

On Friday, July 26, 2024, the Reddit group โ€˜mtgoxinsolvencyโ€™ flooded with celebration when many creditors confirmed receiving their portions from the exchange. The excitement was fueled by various declarations of the amounts received, with one creditor noting that their 36 BTC, worth $60,000 at the time of the exchangeโ€™s collapse, has now appreciated to over $2 million at current rates.

Image of the Mt. Gox insolvency Reddit group celebrating as creditors receive Bitcoin and Bitcoin Cash settlements.
Source: Reddit

Bitstamp also took to social media platform X to confirm the complete distribution of funds, stating that they are fully accessible upon completing necessary security checks. However, the exchange added a disclaimer for a select group.

โ€œโ€‹โ€‹For our customers in the UK, a separate distribution plan will be in place. We'll keep you informed as soon as we receive more information from Mt. Gox Trustee,โ€ the statement read.

Besides the UK-based creditors designated to Bitsamp, another set of creditors are still awaiting payments. 

BitGo Mt. Gox Creditors Still Waiting

Some participants in the โ€˜mtgoxinsolvencyโ€™ Reddit group have reported that they are still waiting for their settlements from BitGo, another exchange responsible for payouts, asking questions about the likely date of resolution. User ‘parrotpants55’ was one of the many to raise the question, with his comment pulling over 13 contributions with people with similar concerns.

While BitGo has not officially confirmed the timeline of its distribution, it is important to note that the Mt. Gox bitcoin settlement appears to be occurring in successions, which may be contributing to the ongoing delay.

Additionally, the recent movement of funds by Mt. Gox to various wallet addresses suggests that distributions to the designated exchanges are still underway.

On the Flipside

  • Some Mt. Gox creditors reported not receiving Krakenโ€™s settlement despite the exchange confirming that distribution was completed days ago.
  • Other creditors have reported challenges in selling the received coins on Bitstamp.
  • Bitcoin is trading up 4.7% in the last 24 hours at press time.

Why This Matters

Bitstamp’s settlement of more Mt. Gox creditors suggests that the decades-long insolvency and settlement chapter may soon be concluded positively for the creditors who awaited resolution.

Read this article for more about Mt. Gox movement of Bitcoin and its impact on the market:
Mt. Gox Bitcoin Hack Still Plagues Market: $6B Shift Sinks BTC

More US political figures are turning to the crypto industry; read here for the latest:
RFK Jr. Embraces Crypto: Claims โ€œMost of My Wealth is in Bitcoinโ€

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Grace Abidemi

Grace is a crypto reporter for DailyCoin, covering a diverse range of market updates. Grace has minor holdings in Bitcoin & Solana, and moderate holdings in Rune & XRP.

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