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Cryptocurrency exchange Mt. Gox, infamous for its 2014 Bitcoin hack, is facing unexpected challenges in its repayment process which started on December 26, 2023, a month after news that the exchange would start repayments before the year ends. Some creditors are reporting double payments to their PayPal accounts, raising concerns about technical glitches and legal repercussions.
As the saga continues, Mt. Gox finds itself in a complex situation, urging recipients to return the excess funds. Here’s a closer look at the unfolding events in the Mt. Gox repayment process.
Double payments and technical hurdles
Recent reports on Reddit reveal that some individuals have received double payments to their PayPal accounts, contrary to the expected reimbursement amounts. A Reddit user, Mat Philips, disclosed receiving 30,283 JPY ($212) instead of the anticipated 106,502 JPY ($747) for a claim involving 0.125 in Bitcoin (BTC) and Bitcoin Cash (BCH).
This unexpected development has prompted Mt. Gox to acknowledge the issue, attributing the double payments to a system error. In an email communication, the exchange’s Rehabilitation Trustee explained that the transfers were inadvertently made twice due to a technical glitch. However, recipients are now being informed that they are not authorized to retain the duplicated funds and are legally obligated to return the excess amount promptly.
The Mt. Gox saga
Launched in 2010, Mt. Gox quickly rose to prominence, becoming the largest Bitcoin exchange by 2013. However, the exchange suffered a severe setback in 2014 when it fell victim to a massive hack, resulting in the loss of 850,000 bitcoins (BTC), currently valued at approximately $36 billion.
Despite the setback, Mt. Gox managed to recover a substantial portion of the lost assets, including 142,000 BTC, 143,000 BCH ($30 million), and 69 billion Japanese yen ($465 million). The plan was to distribute these recovered assets among the 24,000 affected creditors, many of whom have eagerly awaited resolution for almost a decade.
In June of this year, the U.S. Department of Justice took legal action, charging two Russian individuals—Alexey Bilyuchenko and Aleksandr Verner—with criminal acts related to the Mt. Gox hack. This recent hiccup in the repayment process introduces new complexities to an already protracted Mt. Gox saga, leaving both creditors and the exchange grappling with unexpected challenges.
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