Market Musings

After Seven Years, Mt. Gox Victims Finally Get to Vote on Compensation Plan

Published on:
February 26, 2021

The compensation plan has been delayed. And delayed again. And delayed again.

After Seven Years, Mt. Gox Victims Finally Get to Vote on Compensation Plan

Table of Contents

It’s been a long time coming — but now, victims who lost out when Mt. Gox spectacularly collapsed in 2014 will finally get to vote on a proposed compensation plan.


A staggering 850,000 BTC was lost when the exchange (which at the time was the world’s biggest) was targeted in an audacious hack.


A substantial amount of this crypto was lost forever, but the trustee of the embattled platform has 150,000 BTC that can be distributed among creditors.


More than 20,000 people have now filed claims to receive a refund — and at the time of writing, the funds are worth a cool $6.75 billion.


It might be a little while before a clear outcome emerges, and the deadline for casting a vote is likely to be in October.


There have been fears that the release of this 150,000 BTC will result in a flurry of panic selling that could exert downward pressure on Bitcoin’s price.


Craig Wright Handed Legal Notice

In a separate development, Craig Wright — the man who claims to be Satoshi Nakamoto — has been handed a legal notice after revealing that he used to have control over a wallet that was connected to Mt. Gox.


The wallet in question contains 79,000 BTC, but some of those who lost out as a result of the Mt. Gox hack say their crypto has ended up in this wallet.


Lawyers representing Danny Brewster told Wright’s legal representatives: "Your client owes our client, and likely others, a legal and equitable duty to hold any funds received by your client.” 


One small source of comfort for Mt. Gox victims can come from the fact that Bitcoin is now worth substantially more than it was in 2014. The entire cash value of the BTC stolen in the hack seven years ago stood at $460 million — and even though only 150,000 BTC remains, the value of the cryptocurrency has surged by 1,367% since then.


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