Bitstamp has announced the commencement of the process of returning recovered digital assets to creditors of the defunct Mt. Gox exchange. This development represents a significant milestone in the decade-long effort to reimburse those affected by the infamous 2014 hack that led to Mt. Gox’s collapse. Bitstamp, alongside Kraken and three other exchanges, is working together with the trustee to return digital assets to creditors.
On July 24, Kraken made a statement indicating that it has completed the restitution process for its users. Bitstamp, on the other hand, will be distributing Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH) received from the Mt. Gox trustees to Bitstamp customers beginning on July 25. The recipients will gain full control of their assets within a week after necessary security checks have been completed. Unfortunately, the first tranche of distributions will not include UK customers, who can anticipate receiving their restored assets in the forthcoming months. Bitstamp has assured customers from the UK that they will receive more information as the process unfolds.
Bitstamp’s global CEO, Jean-Baptiste Graftieaux, expressed pride in the exchange’s role in facilitating the restitution process and emphasized the remarkable growth of Bitcoin since the hack. He highlighted the fact that even though Mt. Gox investors should never have been unable to access their tokens, many will now potentially make a significant profit. The collapse of Mt. Gox, which occurred when Bitcoin was trading at roughly $600 per coin, left around 20,000 former users in a state of uncertainty. However, with Bitcoin currently valued at approximately $66,000 per coin, many of these users have the potential to see substantial returns.
The Mt. Gox exchange, which operated from 2010 to 2014, was responsible for more than 70% of Bitcoin transactions at its peak. It was forced to suspend withdrawals in February 2014 after discovering suspicious activity in its digital wallets, subsequently leading to its declaration of bankruptcy. The impending distribution of over $9 billion worth of Bitcoin, Bitcoin Cash, and Ethereum as part of the restitution process highlights the magnitude of the impact of the Mt. Gox collapse on the cryptocurrency industry.
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