Defunct cryptocurrency exchange Mt. Gox has announced that it will begin distributing $9 billion in Bitcoin (BTC) and Bitcoin Cash (BCH) to its creditors starting in July 2024. This announcement comes after nearly a decade-long wait following the exchange’s collapse in 2014 due to a major hack.
Background:
- Mt. Gox Hack (2014): Once the world’s leading Bitcoin exchange, handling over 70% of all Bitcoin transactions, Mt. Gox was hacked in early 2014, leading to the loss of 740,000 BTC, valued at approximately $15 billion today.
- Creditors’ Wait: Creditors have been awaiting compensation for nearly ten years. Various legal and logistical challenges have delayed repayments multiple times.
Announcement Details:
- Repayment Plan: In a notice by Mt. Gox Rehabilitation Trustee Nobuaki Kobayashi, the exchange confirmed that it will start the repayment process in July 2024.
- Preparation: The notice highlighted efforts to ensure safe and compliant repayments, including technical preparations, regulatory compliance, and arrangements with cryptocurrency exchanges.
Market Reaction:
- Bitcoin Price Drop: Following the announcement, Bitcoin’s price fell over 5%, dipping to $61,043.
- Bitcoin Cash Impact: BCH also experienced a decline, dropping 9% to $352.86.
- Investor Concerns: The market anticipates selling pressure as early Mt. Gox investors receive their repayments, which have significantly appreciated since their initial investments.
Future Outlook:
- Due Diligence: The repayments will be subject to rigorous due diligence and safety measures to protect creditors’ interests.
- Repayment Deadline: A Tokyo court set a deadline of October 2024 for the completion of the repayment plan.
The commencement of repayments marks a significant milestone in the long-running Mt. Gox saga. While it brings relief to creditors, the potential influx of Bitcoin and Bitcoin Cash into the market could influence prices and trading dynamics in the coming months.
Source: cryptodaily.co.uk
