Mt Gox Ordered to Repay Victims of 850,000 Bitcoin Hack

The Tokyo District Court has ordered Mt Gox to begin compensating victims of its infamous 2014 hack, effectively stalling the exchange's pending bankruptcy.

Posted on the Mt Gox website June 22, the ruling may bring closure to a November 2017 petition requesting compensation - filed by creditors of the now-defunct Mt Gox exchange.

Based on Mt Gox's 2014 filing, this would amount to a payout of approximately $483 per Bitcoin.

Mt Gox customers will finally be paid back - in bitcoin.

This would entitle hack victims to claim their lost Bitcoins, and cash in on the triple-digit percentage hike the coin has seen since the hack.

The move may quell some of the flames engulfing Mt Gox's bankruptcy drama.

Previously overseeing Mt Gox's bankruptcy proceedings, attorney Nobuaki Kobayashi is now acting as the exchange's Civil Rehabilitation Trustee.

Dubbed the 'Tokyo Whale', Kobayashi has repeatedly been criticized for purportedly devaluing Bitcoin when he liquidated thousands of Mt Gox Bitcoins on exchanges.

"As in sales from December 2017 to February 2018, upon consultation with cryptocurrency transaction experts, Bitcoin and Bitcoin Cash were sold in a manner that had no effect on market price and not by ordinary sale on an exchange."

Those who lost Bitcoin in the hack will need to file claims by October 2018 no official schedule has been set for payments.