If you had an account on Mt. Gox and lost your funds after the stock market collapsed in 2014, you still have a chance to get them back. The refund process started in July 2024 and will last until October 2024.
The Story of the Fall of Mt. Gox
Mt. Gox, founded in 2010 by programmer Jed McCaleb, initially operated as a trading platform for Magic: The Gathering playing cards. The exchange’s name comes from the acronym “Magic: The Gathering Online Exchange.” However, Mt. Gox soon transformed into a bitcoin trading platform and was sold to Mark Karpeles in 2011. Thanks to the growing popularity of Bitcoin, the exchange quickly became one of the largest in the world, handling about 70% of global transactions in the oldest cryptocurrency.
Hack Series
Mt. Gox suffered multiple hacks between 2011 and 2014. The first major hack came in 2011, when hackers gained access to a server and stole 25,000 BTC. Subsequent attacks were even more severe. In February 2014, the exchange halted all withdrawals, citing “technical issues.” Shortly after, it was revealed that the exchange had lost around 850,000 BTC, then worth around $460 million, due to ongoing hacks and management errors.
Bankruptcy
As a result of the loss of a large amount of bitcoins, Mt. Gox filed for bankruptcy in March 2014. The company filed for protection from creditors in Japan and then in the United States. Payouts to users were frozen, starting a lengthy lawsuit to recover the lost funds.
After declaring bankruptcy, Mt. Gox users began fighting to get their funds back. The rehabilitation process was approved by a Japanese court in June 2018, but was repeatedly delayed for various reasons. In the meantime, Mt. Gox’s former CEO, Mark Karpeles, was convicted of manipulating financial data, although he was acquitted of fraud charges.
Current situation
In 2024, after a decade of delays, the payments to affected users began. Nobuaki Kobayashi, who is managing the process, announced that the refunds will be made in bitcoin and bitcoin cash, as well as fiat currency, depending on the users’ choice. The entire process is expected to last until the end of October 2024. It has been approved by a Japanese court and received the support of about 99% of creditors.
Scale of losses
The collapse of Mt. Gox affected around 24,000 users who lost their funds. Despite numerous attempts to recover the funds, only around 150,000 bitcoins were secured for refunds, a small portion of the total losses. However, thanks to the significant increase in the value of BTC since the collapse, even a small percentage of the recovered funds could be of significant value to those affected.
How to Recover Funds from Mt. Gox?
Here is the step by step guide on how to claim your Mt. Gox funds:
Step 1: Register on the Mt. Gox Rehabilitation Website
- Visit Mt. Gox Rehabilitation Website: Mt. Gox Rehabilitation.
- Create an account: If you haven’t already, you’ll need to create an account to access your creditor dashboard.
- Log in: Once you have created your account, log in to go to your dashboard.
Step 2: Filing a claim
- Prepare documents: Make sure you have all the necessary documents to support your claim. This could be old Mt. Gox account statements, transaction confirmation emails, etc.
- Complete the claim form: On the rehabilitation website you will find a claim form that you will need to fill out. You will need to provide details about your account and claim.
Step 3: Identity verification
- Submit your identity documents: As part of the verification process, you will be required to submit copies of your identification documents such as your passport, ID card or driving license.
- Verification by Mt. Gox team: Your application and documents will be reviewed by the rehabilitation team. This may take several weeks.
Step 4: Select payment method
- Choose payment method: Once your application is approved, you will need to choose a payment method. You can choose to receive funds in cryptocurrencies (BTC, BCH) or fiat currency (JPY, USD).
- Enter your payment details: Provide accurate withdrawal details, such as your cryptocurrency wallet address or bank account details.
Step 5: Waiting for payment
- Monitor your submission status: You can check the status of your application regularly on the Mt. Gox Rehabilitation website.
- Wait for payment: The withdrawal process may take until the end of October 2024. Please ensure your contact details are up to date to receive notifications of progress.
If you encounter any issues, please contact Mt. Gox support via the website.
Final Thought
If you are a former Mt. Gox user, you still have a chance to get some of your funds back. The rehabilitation process is ongoing and at this point it seems that the platform will make sure that all payments are made according to the agreed schedule.
