Mt. Gox To Distribute Bitcoin ($BTC) and Bitcoin Cash ($BCH) Repayments In July 2024
Defunct crypto exchange Mt. Gox will start distributing $9 billion in bitcoin ($BTC) and bitcoin cash ($BCH) repayments from the beginning of July 2024. Following the announcement, $BTC dropped over 5% and is currently trading at $61,043.
Long-Awaited Relief for Mt. Gox Creditors
Mt. Gox creditors will finally receive some relief after the now-defunct exchange announced it will begin distributing $9 billion in bitcoin ($BTC) and bitcoin cash ($BCH)* from the beginning of July. Creditors have waited over ten years to receive funds stolen in a 2014 hack.
Background on Mt. Gox Hack
Defunct Japanese cryptocurrency exchange Mt. Gox will start distributing assets stolen from clients during a 2014 hack. In a notice sent by Mt. Gox Rehabilitation Trustee Nobuaki Kobayashi on Monday, the exchange will begin distributing assets to its creditors after years of postponements. According to the notice, Mt. Gox will repay $9 billion in $BTC and $BCH.
“We have taken time to ensure safe and reliable repayment to creditors, including technical remedies for safe repayments, compliance with financial regulations in each country, and discussion of repayment arrangements with the cryptocurrency exchanges,” the notice reads.
Impact of the 2014 Hack
Mt. Gox, once the leading cryptocurrency exchange responsible for processing over 70% of all Bitcoin transactions in its early years, fell victim to a devastating hack in early 2014. The attack resulted in the loss of 740,000 bitcoin, currently valued at $15 billion. After years of discussions, creditors will finally receive repayments. Kobayashi explained that the repayments made from the beginning of July are subject to due diligence and specific safety measures.
The repayment plan has been in the works for several years and received a deadline of October 2024 from a Tokyo court last year.
Bitcoin Drops Over Concerns of Selling Pressure
Minutes after the announcement became public, $BTC plummeted to $61,000 while $BCH dropped 9% from yesterday, currently trading at $352.86. $BTC slightly recovered and traded at $61,338 when writing. The repayments will likely add selling pressure to the Bitcoin market as early Mt. Gox investors will receive repayments with a much higher value than their initial investment. It is reasonable for creditors to sell their holdings or at least part thereof.
