Mt. Gox To Begin Repayment Of Stolen Bitcoin Assets In July 2024, Market Impact Feared

The shuttered cryptocurrency exchange Mt. Gox, once the world’s largest cryptocurrency exchange, StartRepayment to victims of the infamous hack in 2014. Reorganization trustee Nobuaki Kobayashi announced that as part of the reorganization plan, the company is ready to start distributing Bitcoin and Bitcoin Cash from July 2024.

Founded in 2010, Mt. Gox handled over 70% of Bitcoin transactions at its peak. However, in early 2014, it suffered a massive security breach that resulted in the loss of approximately 740,000 BTC, worth $15 billion in today’s value. After the hack, Mt. Gox declared bankruptcy, leaving thousands of investors in financial disarray and sparking a lengthy legal battle for compensation.

The upcoming repayments include 142,000 Bitcoin, 143,000 Bitcoin Cash, and 69 billion yen (approximately $432 million). These assets will be distributed to approximately 127,000 creditors. Kobayashi stressed that the repayment process has been meticulously planned to ensure safety, reliability, and compliance, and that payments will begin in July 2024.

The Tokyo court-supervised repayment plan has been delayed multiple times since Mt. Gox’s collapse, but a major breakthrough came in May when the exchange moved more than 140,000 bitcoin out of its cold wallets for the first time in five years. These transactions are seen as a preparatory step for upcoming distributions.

Bitcoin’s future after repayment is uncertain

The repayment process will be conducted through cryptocurrency exchanges that have partnered with Mt. Gox. The order of repayment will depend on the progress of due diligence and information verification at each exchange. This structured approach is intended to streamline distribution and mitigate potential market disruptions.

Market analysts are closely watching the potential impact of these huge payouts on Bitcoin’s price. There are concerns that early investors, who will receive their assets at a significantly higher value than they initially invested, may sell their holdings, putting selling pressure on the market. This speculation led to a slight drop in BTC prices after the payout announcement.

For many creditors, the repayment, scheduled for July, marks the end of a decade of hardship. The Mt. Gox hack and subsequent bankruptcy became a symbol of the risk and volatility of bitcoin’s early days. The impending repayment offers closure and a chance to move forward for those who lost their savings in the exchange’s collapse.

Related Materials | 3iQ Sets Stage for Solana Rally with ETP Offer on Toronto Stock Exchange

Related Article

0 Comments

Leave a Comment