Mt. Gox Bankruptcy: A Second Chance for Investors
Remember Mt. Gox, the once-mighty Bitcoin exchange that went belly up in 2014 after a massive hack? Well, a decade later, there might be a glimmer of hope for some of the investors who lost money during the fiasco.
After losing 950,000 Bitcoin in 2011, the company managed to recover roughly 140,000 coins. While that wasn’t worth much at the time, thanks to Bitcoin’s exponential growth, those recovered coins are now worth a whopping $9 billion.
Distributions to the site’s 20,000 creditors will begin next month, and will be sent in a mix of Bitcoin and Bitcoin Cash. That means some of the investors who lost their funds in the Mt. Gox debacle might get a second chance.
While many account holders have sold off their claims over the years, those who held on could see a significant return. CNBC reports that one of the claimants in a class-action lawsuit against Mt. Gox, Gregory Greene, said his account included $25,000 in frozen Bitcoin when the company went bankrupt. Now, that’s worth a cool $2.5 million.
This news serves as a stark reminder of the volatility and potential rewards in the cryptocurrency market. It also underlines the importance of proper security measures for crypto exchanges, and the risks associated with investing in digital assets.
