Mt. Gox’s Alleged Double PayPal Payments Spark Speculation on Reddit

Mt. Gox, a leading crypto exchange before its collapse in 2014, got back in the news for making creditor repayments. However, Reddit users now claim a payment error from the defunct exchange due to a “system issue.”

A Reddit user shared an alleged official communication from the Rehabilitation Trustee. It noted that the money was transferred through PayPal as part of the civil rehabilitation proceedings for Mt. Gox. It explained, “However, due to a system issue, the transfer of money to you was inadvertently made twice.”

The reported message requests that users send back the duplicate transfer, emphasizing their legal responsibility to do so.

Mt. Gox cites legal obligation

Responses within the community to the post about Mt. Gox’s payment error are mixed. Some, like PPvotersPostingLs, have already refunded the mistaken payment, recognizing it as a human mistake. Another member, noeeel, views the refund as a legal obligation, though they note the complications of international transactions. However, there’s a general expectation among the community that Mt. Gox might enforce the return of the extra funds through PayPal.

Another user humorously commented on the exchange’s decade-long delay in refunding creditors and promised to return the extra payment in the next ten years.

Some users also suspect the double payment may not be just a blunder, proposing it could be an intentional delay tactic or Mt. Gox’s team’s potential incompetence. They suggest that this error could lead to increased billable hours for the law firm handling the bankruptcy, potentially reducing the funds available for creditors.

Crypto market records weakness

The Mt. Gox ordeal has spanned over a decade and continues to be a complex web of issues. It has elicited frustration among the cryptocurrency community. Earlier in September, the defunct crypto exchange received court approval to delay its repayment deadline by an additional year.

The Tokyo District Court authorized the Rehabilitation Trustee to extend the deadlines for base repayment, early lump-sum repayment, and intermediate repayment to October 31, 2024. As repayments finally began, they were reportedly not without alleged errors, adding another chapter to the Mt. Gox saga.

The reports of the Mt. Gox payment release come as the broader cryptocurrency market is experiencing a slight weakness. CoinGecko data indicates a 2% decline in the global cryptocurrency market cap, now valued at approximately $1.7 trillion. Concurrently, Bitcoin has also witnessed a 3% drop, with its value currently hovering around the $42,000 mark.

Also Read: Court Allows Mt Gox To Delay Repayments By Another Year, Bitcoin To Rally