Creditors of the bankrupt exchange Mt.Gox have confirmed that they have started receiving payments on their debts, according to reports on the popular blog platform Reddit. Users on the platform shared their excitement as they received compensation for their previously blocked crypto assets in the form of fiat currency, specifically Japanese yen. The payments were processed through the widely used payment service Pay Pal.
This development comes almost ten years after Mt.Gox’s clients lost access to their cryptocurrency holdings. Last month, trustee Nobuaki Kobayashi had announced plans for the exchange’s interim administration to kickstart the repayment of debts.
However, despite this positive news, the exact timeline for completely compensating the Mt.Gox exchange clients for their losses remains uncertain. The extensive list of creditors and the various forms of repayment options contribute to the complexity of the process. For instance, the MtGox Investment Funds (MGIF) and the New Zealand cryptocurrency exchange Bitcoinica, accounting for approximately 20% of the total debt, have opted to receive their assets in bitcoins.