Bankruptcy for nine years and still not fully compensated! Mt. Gox's two major creditors to receive compensation by the end of September, about 21% of the funds lost by victims.

After the largest Bitcoin exchange Mt.Gox was hacked and declared bankruptcy in 2014, the legal proceedings involving creditors are still ongoing. Sources familiar with the matter revealed that two major creditors are expected to receive partial compensation by September 30th this year. Since most creditors have opted to receive Bitcoin as compensation, it is believed that there will be no price fluctuations caused by selling off the coins.

Theft of 850,000 BTC: Mt. Gox Lawsuit Nearing a Decade

In 2014, Mt. Gox was hacked, resulting in the theft of 850,000 bitcoins valued at $460 million at the time. The exchange was left with just over 140,000 bitcoins (BTC) and 69 billion Japanese yen. Additionally, due to the Bitcoin network's hard fork event in 2017, an additional 140,000 Bitcoin Cash (BCH) was created.

According to CoinDesk, after years of litigation in Tokyo courts, New Zealand's Bitcoinica exchange and MtGox Investment Funds MGIF can now receive 90% of the compensatory funds available, roughly 21% of the funds they lost in 2014. These two entities represent one-fifth of the claimants for Mt. Gox compensation and have both opted for cryptocurrency payments in an early lump sum. It is believed that the option for crypto payments will not force the bankruptcy trustee to liquidate in the trading market, thereby causing Bitcoin volatility.

Want More Compensation? Prepare to Wait Longer

Mt. Gox offers options for early payments or waiting for litigation for compensatory claims. According to analysis by the creditor community, those who choose to wait may potentially receive more than the 21% of the lost funds but could also receive less, with the added possibility of waiting several more years.