Defunct Crypto Exchange Mt. Gox to Repay All Bitcoin Creditors By End of August
In a fresh development on Wednesday, July 6, defunct crypto exchange Mt. Fox announced that it will will repay all Bitcoin creditors by the end of August 2022.
This comes a big relief to all the previous users of Mt. Gox who found their funds stuck for almost eight years, following the 2014 hack of the exchange.
The recent announcement coming from Mt. Gox reads: “The Rehabilitation Trustee is currently preparing to make repayments in accordance with the approved rehabilitation plan of which confirmation order of the Tokyo District Court was made final and binding on November 16, 2021.”
In order to receive the repayments, rehabilitation creditors will have to make “choices and registrations”. The creditors will have to make whether to make an early lump-Sum repayment or not. The announcement mentions “The choice of whether to receive Repayments for a portion of the rehabilitation claims involving cryptocurrency in the form of Bitcoin and/or Bitcoin Cash”.
Besides, they also need to register for their preferred method of repayment in cash. They also need to have registration of user information for crypto exchanges or custodians in order to receive repayments in cryptocurrency.
To ensure a transparent repayment process, Mt. Gox said that “In making Repayments, the Rehabilitation Trustee will use the names and postal addresses filed by rehabilitation creditors for identity verification, and will provide them to financial institutions, Exchanges Etc., among others involved in the Repayment procedures”.
As per details, Mt. Gox shall be releasing nearly 135,000 BTC over the next 60 days. While the repayment certainly brings cheer to the creditors, the bigger questions is considering massive liquidity influx in the market, how shall it affect the Bitcoin prices?
Back in 2013, when Mt. Gox went defunct, BTC was trading under $1,000. Thus, all those creditors who receive their BTC will already be making 20x gains as of the current price. Analysts are expecting that this might possibly trigger major sell-off in the market if the creditors decide to book profits.
The Mt. Gox hack was one of the first and the biggest thefts in the history of crypto markets. Following the event, the Tokyo-based exchange had to file for bankruptcy.
The crypto market today is currently undergoing a similar period of intense selling pressures as crypto lenders are filing for bankruptcies amid huge liquidity crisis.