Payments for $ 9 Billion Bitcoin Settlement of Mount Gox Collapse Could Begin Months, Report Says | Currency News | Financial and business news

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Bitcoin.

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Mt. Gox creditors are expected to receive $ 9 billion in payments related to the crypto stock market collapse in 2014. An asset manager expects payments to start in Q1 or Q2 of 2022. Terms of a compensation settlement were finalized earlier this week.

The collapsed crypto exchange Mt. Gox’s creditor compensation plan has been approved and payments of around $ 9 billion are expected to be made soon.

While it’s still unclear whether payments will be made in cryptocurrency or fiat currency, some industry observers are seeing creditors getting bitcoin within months.

“Those affected will receive a significant sum of bitcoin, likely in the first or second quarter of 2022,” Matthew Dibbs, chief operating officer of crypto firm Stack Funds, told Reuters.

The settlement plan, which was filed in Tokyo District Court in February, is now “final and binding,” according to an announcement made earlier this week by Mt. Gox administrator Nobuaki Kobayashi.

With the plan finalized, the process of compensating those involved in the now defunct exchange – whose losses are estimated at billions of dollars – should begin quickly. Creditors were asked to register their bank account information on a specified website to receive payment.

Mt. Gox was once the world’s largest bitcoin exchange. But then around 850,000 bitcoins were lost in a hack and the business collapsed in 2014.

Since then, affected investors have fought legal battles to recover their funds. A 2018 petition sought compensation for creditors, and last month around 99% of creditors approved a draft rehabilitation plan.

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