Mt. Gox, once a major cryptocurrency exchange, has officially started distributing Bitcoin (BTC) and Bitcoin Cash (BCH) to its creditors. This news comes from a formal announcement by Mt. Gox’s Rehabilitation Trustee. The repayments are being processed through specific exchanges, including Bitbank and SBI.

This announcement followed a significant transaction where Mt. Gox’s wallet moved 1,545 BTC, valued at around $84 million, to Bitbank’s hot wallet, according to data from Arkham.

Yesterday, Mt. Gox began a series of Bitcoin transfers, with some of its assets sent to a Bitbank wallet. Observers think this might have been a preliminary step before larger payments. Arkham also reported a substantial transfer of 47,229 BTC, worth approximately $2.7 billion, from Mt. Gox’s wallet to a new location late last night.

The process of repaying creditors started this July, after a repayment plan was announced in June. Mt. Gox, based in Tokyo, was once the leading Bitcoin exchange but collapsed in 2014, dealing a significant blow to the cryptocurrency industry. It began in 2010 as a platform for trading Magic: The Gathering cards but soon transitioned into the world’s largest Bitcoin exchange.

Jed McCaleb, a programmer, founded Mt. Gox in July 2010, and in March 2011, he sold it to Mark Karpelès, a French developer. Under Karpelès, the exchange grew its Tokyo operations and by 2013, handled over 70% of all Bitcoin transactions globally.

However, Mt. Gox faced numerous security and operational issues. From 2011 to 2013, it suffered multiple hacks and transaction malleability attacks, which led to frequent halts in trading and withdrawals. These persistent problems gradually undermined user confidence and created liquidity issues.

The exchange’s problems peaked in early 2014 when it stopped all Bitcoin withdrawals due to technical difficulties. This raised doubts about the company’s financial health. On February 24, 2014, Mt. Gox shut down all operations, including its website and trading activities.

An internal report later uncovered the loss of 744,408 bitcoins, then worth about $350 million, due to a long-term, unnoticed security breach. Following this, Mt. Gox filed for bankruptcy.

The recent distribution of funds to former users has increased selling pressure in the Bitcoin market, highlighting the lasting impact of Mt. Gox’s collapse. Currently, Bitcoin is trading at approximately $54,200.