Japanese cryptocurrency exchange Mt. Gox, once a dominant player in the market, went bankrupt in 2014 due to a massive hacking incident. Over the past decade, bankruptcy litigation has been ongoing, with numerous delays. Finally, victims of the hack are set to begin receiving repayments in July, totaling over $9 billion in U.S. dollars and up to 140,000 Bitcoins.
Mt. Gox was a major player, handling over 70% of all BTC transactions at its peak. However, in early 2014, the exchange was hacked, resulting in the loss of approximately 740,000 Bitcoins, worth about $15 billion at today’s prices. This was one of the largest hacks in cryptocurrency history, leading to the exchange’s collapse.
On Monday, the rehabilitation trustee, Nobuaki Kobayashi, stated that repayments will be made from the beginning of July 2024. “The Rehabilitation Trustee has been preparing to make repayments in Bitcoin and Bitcoin Cash under the Rehabilitation Plan,” Kobayashi said. He noted that due diligence and safety measures are necessary before the payments proceed.
Bitcoin Transfer Signals Mt. Gox’s Revival
In recent months, Mt. Gox moved 140,000 BTCs, worth around $9 billion, from cold wallets. This marked the first time such significant on-chain movements occurred in five years. The transfer is part of the preparation for the repayment process, which includes distributing Bitcoin and Bitcoin Cash to approximately 127,000 creditors.
The repayment plan, which has been in development for several years, was mandated to be completed by October 2024 by a Tokyo court. The plan aims to distribute 142,000 Bitcoin, 143,000 Bitcoin Cash, and 69 billion Japanese yen to affected creditors.
The upcoming repayments have caused concern in the cryptocurrency market. Early investors will likely sell some of their holdings since the assets they receive will be valued much higher than their original investments. This selling pressure could negatively impact BTC prices, causing fluctuations in the market as traders react to the influx of funds.
The anticipation of these repayments has already influenced the market, with BTC prices dropping slightly following the announcement. In the early hours today, BTC’s price fell from over $62,300 to under $62,100. This decline reflects market concerns over the potential selling pressure from the upcoming repayments.
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