Mt. Gox Accidentally Double-Pays Creditors Due to System Glitch
Summary:
Numerous creditors of the defunct crypto exchange Mt. Gox reportedly received double compensation due to a system glitch. As per Reddit users, the platform acknowledged the error and requested repayment of the second transfer through email. Some users have returned this accidental payout, while others demand a Know Your Customer (KYC) setup as a prerequisite. The repercussions of not returning the additional funds could be grave, as exemplified with a similar incident involving Crypto.com.
Numerous reports on Reddit have indicated that a number of debtors of the defunct cryptocurrency exchange, Mt. Gox, have been erroneously compensated twice. As per a Reddit user, an error was admitted by Mt. Gox via an email, requesting the repayment of the second accidental payout.
Reddit member u/rlycreativename publicly shared what appears to be an email received from the Mt. Gox Rehabilitation Trustee. The contents of the email reveal a system glitch resulted in an unintentional double disbursement of funds. It also alerted the recipient of having no legal right to hold onto the second transfer, thereby obligating them to return the additional payment to the Trustee. The sender requested the immediate return of the doubly transferred amount.
Other members of Reddit also claimed to have either received duplicate payments or related notification emails. User u/lukhaz revealed that they were asked to pay back the duplicate transfer by Mt. Gox. Meanwhile, in a humorous response to another post, u/CaptainValor suggested the extra payment could be a belated Christmas gift. Another member, u/PPvotersPostingLs, confirmed they returned the duplicate payout, urging others not to be unduly harsh on Mt. Gox's Trustee Nobuaki Kobayashi. Despite this, there were those, like user u/JALEW, who stated they would return the money provided Mt. Gox's Trust successfully completes a Know Your Customer procedure with them and waits for a decade.
Efforts to get a response from the Mt. Gox Rehabilitation Trust were unsuccessful. Although some Reddit users jestingly stated they wouldn't repay the additional funds, the reality of not doing so could have grave consequences. As an example, in 2022, $10 million was mistakenly transferred to two sisters in Melbourne by Crypto.com. One of the sisters was eventually detained for failing to refund the received amount, as per an Australian news source.
The Mt. Gox scandal was among the initial cryptocurrency exchange breaches in history. The heist saw over 740,000 Bitcoin (BTC) being siphoned off, an amount that was valued at around $460 million at the time. With the escalating price of BTC, the valuation of the lost sum has increased and currently stands at more than $31 billion. The declaration of bankruptcy by Mt. Gox wasn't long in coming after the incident. However, it took almost a decade for the creditors to achieve a court settlement and commence the receipt of payments. As per reports from Dec. 26, the pay-outs began to be distributed via PayPal.
Published At
12/26/2023 11:01:02 PM
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