Bitstamp, a prominent crypto exchange, has recently started the process of returning recovered digital assets to creditors of the defunct Mt. Gox exchange. This development signifies a major milestone in the decade-long effort to reimburse those affected by the infamous 2014 hack that ultimately led to the collapse of Mt. Gox. Bitstamp is collaborating with the trustee alongside four other exchanges, including Kraken, to facilitate the return of digital assets to creditors.
Kraken, another exchange involved in the process, announced on July 24 that it had 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 its customers starting July 25. Upon the completion of necessary security checks, recipients will gain full control of their assets within a week. It is important to note that the first round of distributions will not include UK customers, but they can expect to receive their restored assets in the coming months.
Bitstamp’s global CEO, Jean-Baptiste Graftieaux, expressed pride in the exchange’s role in facilitating the restitution process. He also highlighted the remarkable growth of Bitcoin since the Mt. Gox hack. Graftieaux mentioned that Bitcoin’s value as an asset has proven itself by the significant profits that many Mt. Gox investors are likely to make. At the time of the Mt. Gox collapse, Bitcoin was trading at around $600 per coin. Now, with Bitcoin’s current value nearing $66,000 per coin, the potential returns for these users are substantial.
The Mt. Gox exchange, operational from 2010 to 2014, was once a dominant player in the world of Bitcoin, accounting for over 70% of Bitcoin transactions during its peak. However, the exchange encountered turmoil when it suspended withdrawals in February 2014 due to suspicious activity in its digital wallets. This event ultimately led to Mt. Gox declaring bankruptcy, leaving approximately 20,000 former users in a state of uncertainty.
With over $9 billion worth of Bitcoin, Bitcoin Cash, and Ethereum set to be distributed as part of the restitution process, many affected users of Mt. Gox now have the opportunity to recover a significant portion of their lost assets. As the process continues to unfold, Bitstamp and other collaborating exchanges are working diligently to ensure that creditors receive their deserved compensation after years of waiting. The legacy of the Mt. Gox collapse serves as a reminder of the importance of security in the crypto industry and the need for exchanges to prioritize the protection of their users’ assets.
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