Mt. Gox Begins Creditor Verification Ahead of 200k BTC Distribution

Mt. Gox, a former major cryptocurrency exchange, is now contacting creditors to confirm their identities. This is part of the process to repay them for their losses due to a significant hack. 

Creditors received emails asking them to verify their identity linked to their Mt. Gox account. This verification is necessary to regain their lost Bitcoin ($BTC) and Bitcoin Cash ($BCH).

A detailed email was shared on the Mt. Gox discussion forum earlier this week. The email confirms that the user has proven they own the account and have passed identity checks by the exchange's Trustee. It mentions that repayments will be made in Bitcoin or Bitcoin Cash, but warns that accounts that are disabled or frozen in the future may not receive repayment.

A crypto supporter MinDao highlighted the interesting supply dynamics that could play out in the coming months as Mt.Gox distribution of over 200k BTC is expected in the next 2 months in addition to the 600k+ GBTC repricing and the forthcoming Bitcoin halving which could reduce Bitcoin’s supply by 160K BTC.

Mt. Gox was one of the earliest cryptocurrency exchanges, handling about 70% of Bitcoin transactions. In 2014, it was attacked, resulting in the loss of 850,000 BTC (worth $450 million then, over $33 billion now). The attack was due to security weaknesses, leading to a breach and loss of user funds. 

This event caused market turmoil and long legal battles over who was responsible and how to repay the losses. Mt. Gox declared bankruptcy in February 2014.