Mt. Gox 150K Bitcoin Unlock, Big Hurdle for Market Recovery
Creditors of Mt. Gox could soon get repaid in Bitcoin for their 2014 losses when the exchange was hacked. Mt. Gox’s bankruptcy trustee currently holds 141,686 Bitcoin.
Non-functional Japanese crypto exchange Mt. Gox creditors may soon be compensated on their Bitcoin held by the platform’s trustee since the 2014 hacking incident.
Mt. Gox’s Japanese bankruptcy rehabilitation trustee, Nobuaki Kobayashi, Attorney-at-law sent a letter to the creditors on July 6th requesting them to register online and provide information on how they will want to get paid. The choice is given to the creditors whether to receive repayments for a portion of the rehabilitation claims involving cash, cryptocurrency in the form of Bitcoin and/or Bitcoin Cash (“Cryptocurrency”) or not. Creditors of Mt. Gox can lead to the selling pressure on bitcoin and crypto market.
To compensate the creditors, rehabilitation plan was originally approved in 2018 and confirmed in October 2021. Out of the initial 850,000 bitcoin lost by Mt. Gox's decline, only a reported 141,686 Bitcoin has been recovered.
In the official communication on the Mt. Gox website, Kobayashi did not give an exact date for the repayments to begin.
Bloomberg report explains that some Mt. Gox creditors will most likely to sell their bitcoin into a market that is already struggling to recover and the side effects of the LUNA/UST collapse.