Mt. Gox Double Payment Error: Creditors Urged to Return Overpaid Funds - Blockchain.News

Mt. Gox Double Payment Error: Creditors Urged to Return Overpaid Funds

Rebeca Moen Dec 27, 2023 12:04

Mt. Gox, a former Bitcoin exchange, paid creditors twice during its settlement process, causing mixed reactions among creditors and underscoring the complexities of the decade-long aftermath.

Mt. Gox Double Payment Error: Creditors Urged to Return Overpaid Funds

Some creditors of the Mt. Gox crypto exchange have reportedly received double payments during the ongoing settlement process. This development adds another twist to the saga of Mt. Gox, a once-dominant Bitcoin exchange that collapsed in 2014.

Recent reports suggest that several creditors of Mt. Gox received their settlement funds twice. This unexpected occurrence was brought to light through multiple Reddit posts, where users shared their experiences of receiving duplicated payments. One such Reddit user, u/rlycreativename, posted the text of an email allegedly from the Mt. Gox Rehabilitation Trustee, which stated that due to a system issue, double transfers were made. The Trustee emphasized that recipients were not authorized to receive the second transfer and were legally obligated to return it​​​​.

The double payment has elicited a range of reactions from creditors. While one user, u/PPvotersPostingLs, claimed to have returned the overpaid amount, citing it as a mistake, others expressed reluctance. For instance, Reddit user u/JALEW stated an intention to return the funds but only after completing a Know Your Customer (KYC) process and enduring a ten-year wait, reflecting the frustration among some creditors over the prolonged settlement process. It's important to note that retaining such unintended funds could lead to legal consequences, as demonstrated in a case where two sisters in Melbourne faced arrest for not returning over $10 million accidentally sent by​​​​.

Mt. Gox was a major player in the early Bitcoin trading scene but met its demise following a massive hack in 2014, which resulted in the loss of about 740,000 Bitcoin. This led to a complex legal and financial struggle, culminating in a plan for compensation to creditors. After much negotiation, it was decided that general creditors would receive cash repayment, while select creditors could opt to be paid in cryptocurrency. The repayment process, which began a decade after the initial insolvency, is expected to continue into 2024 due to the large number of creditors and the complexity of the settlement​​​​​​.

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