Mt. Gox Creditors Report Double Payments in Settlement Funds; Exchange Seeks Remediation

cryptonews.com:

Mt. Gox, the once-dominant cryptocurrency exchange that famously collapsed in 2014, has recently encountered a new hurdle in its efforts to repay creditors. Reddit users are now reporting a payment error stemming from what the exchange describes as a “system issue” during the ongoing civil rehabilitation proceedings.

On December 26, a Reddit user shared what appeared to be an official email from the Rehabilitation Trustee overseeing the creditor repayments. According to the email, funds were transferred via PayPal as the initial step in the civil rehabilitation process for Mt. Gox.

However, later that day, Mt. Gox experienced a significant issue in the fund distribution process. The email stated,

“Due to a system issue, the transfer of money to you was inadvertently made twice.”

The exchange admitted to making a transaction error by transferring funds twice. The official message urged recipients to promptly check their PayPal accounts to verify the amounts involved, emphasizing that the second transfer was an inadvertent mistake while the first transfer constituted the legitimate repayment.

Recipients were explicitly informed that they are not authorized to keep the funds from the second transfer and are legally obligated to return the amount to the Rehabilitation Trustee. The communication provided specific details about the amounts involved, offering transparency about the error.

Affected users are now encouraged to initiate the refund process using PayPal’s “Refund” feature. In cases where this feature is unavailable, an alternative solution is proposed, requesting the return of the amount directly to the Rehabilitation Trustee’s PayPal account through a manual transfer.

This latest incident adds a new layer of complexity