What Does the Mt. Gox Repayment Mean for Bitcoin?
The Mt. Gox Debacle
Mt. Gox was once a major Bitcoin exchange, handling 70% of all Bitcoin trades worldwide. In 2014, the exchange went bankrupt after a series of hacks and malpractices, leading to the loss of 850,000 BTC worth $500 million at the time. Today, the lost BTC’s current value totals $17.8 billion. A total of 141,000 of these BTCs have been recovered and will be distributed among the customers. Along with the Bitcoin stash, the bankrupt crypto exchange will distribute $1.7 billion worth of cash and 142,000 Bitcoin Cash to its customers worldwide as part of the rehabilitation plan.
The Market Impact of the Mt. Gox Repayment
US authorities plan to sell 41,000 BTCs this year. With the additional Mt. Gox BTCs back in circulation, investors are concerned about the impact on the Bitcoin market. According to Matrixport, a cryptocurrency financial services provider, the Mt. Gox repayment will have a minimal impact on the Bitcoin market. However, investors should closely follow the distribution process.
The Mt. Gox Repayment Delay
Recently, the registration deadline for the Mt. Gox repayment was pushed to April 6, 2023, leading to a one-month delay in distribution. The assets’ distribution to all creditors is now scheduled for October 31 instead of September 30.
Payment Options for Creditors
Creditors will receive a basic payment and will have four options to receive the rest of their money. These include an early lump-sum repayment, a deposit via bank transfer, repayment via cryptocurrency rehabilitation claims, and repayment through a fund transfer provider.
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Overall, the Mt. Gox repayment will impact the Bitcoin market minimally, according to Matrixport. The distribution process is, however, a cause for concern, and investors must keep track of it. Creditors of Mt. Gox have some options to receive their funds, and the repayment delay is not expected to cause significant market disturbances.