Court Documents Reveal Bitcoin Belonging to Mt. Gox Bankruptcy Trustee Lost in PrimeTrust Collapse

Court Documents Reveal Bitcoin Belonging to Mt. Gox Bankruptcy Trustee Lost in PrimeTrust Collapse

The deadline for repayments related to funds lost in the Mt. Gox exchange hack were postponed another year in September, the third postponement in 2023. New court documents related to the PrimeTrust bankruptcy proceedings reveal the reason for the latest postponement.

According to an affidavit filed by PrimeTrust in November discloses some of the major creditors and the estimated liabilities associated with their claims. Included on the list is the rehabilitation trustee for the Mt Gox Bankruptcy estate. 143,000 Bitcoins recovered from the Mt. Gox hack which were supposed to be used to reimburse Mt Gox creditors were among the Bitcoin in the hardware wallet for which PrimeTrust lost the private keys in 2021.

Legal observers indicated that while the proceedings for PrimeTrust's chapter 11 bankruptcy are still ongoing and the embattled crypto custody firm is still seeking a buyer for its assets and operations, it is unlikely that the 143,000 Bitcoin claim by the Mt. Gox trustee will ever be repaid.

The news is devastating to Mt. Gox creditors who have been waiting for potential reimbursements since the exchange was shut down following the massive 850,000 Bitcoin hack in 2014. The Bugle will continue to follow developments in this story.