Key Points
- Mt.Gox plans to start repaying $9 billion in Bitcoin to its customers from the first week of July 2024.
- There are concerns that this could put selling pressure on Bitcoin, affecting its market value.
After a wait of nearly a decade, the customers of the collapsed cryptocurrency exchange, Mt.Gox, are finally set to receive their Bitcoin and other funds. The exchange announced on Monday, June 24, that it would initiate the distribution of assets to those affected by a 2014 crypto hack. The repayment is set to begin in the first week of July 2024, following a series of postponed deadlines.
Preparations for Repayment and Potential Market Impact
The Rehabilitation Trustee of Mt.Gox, Nobuaki Kobayashi, stated on the exchange’s website that preparations are in place to make repayments in Bitcoin and Bitcoin Cash under the Rehabilitation Plan. Before any payment is made, due diligence and other safety measures must be completed. The repayment process will be carried out in collaboration with cryptocurrency exchanges that have confirmed the required information for the repayment.
There are concerns that the repayment could exert selling pressure on Bitcoin, a sentiment that is already prevalent in the market. These early investors are likely to receive assets at a much higher value than their original investments before 2013, which could prompt them to sell a portion of their holdings. At the time of writing, Bitcoin was trading at $62,254.68, down 3.26% in the last 24 hours. The coin’s value could potentially fluctuate further in response to this news.
The Fall of Mt.Gox
Mt.Gox was once a leading cryptocurrency exchange, handling up to 70% of all Bitcoin transactions. However, in 2014, it faced a major setback when hackers stole about 740,000 units of Bitcoin, currently worth $15 billion. This was the largest of several attacks on the exchange.
The trustees of Mt.Gox developed a repayment plan to compensate affected users. In March 2023, it was suggested that creditors would begin receiving payouts from that month, with a final deadline for repayments set for September 30, 2023. However, by the end of 2023, no Mt.Gox user had been reimbursed.
Around a month ago, on-chain data revealed that over 141,686 Bitcoins were transferred from addresses linked to Mt.Gox to unknown addresses. The transfers, worth about $9 billion, were made in 13 separate transactions after five years of inactivity. This recent activity could finally signal the end of Mt.Gox’s numerous delays.
