Based on Bloomberg’s report, the defunct Bitcoin exchange Mt. Gox, previously responsible for processing around 70% of global Bitcoin transactions, is potentially preparing to dispense approximately $9 billion in Bitcoin to its indebted clients.
This event represents a pivotal moment in the lengthy and complex story of cryptocurrency’s history.
In 2011, Mt. Gox, once the most prominent Bitcoin exchange globally, experienced a hack. By 2014, the company had filed for bankruptcy due to this incident. The aftermath of Mt. Gox’s downfall greatly affected the cryptocurrency market. Numerous investors suffered financial losses as large quantities of Bitcoin went missing or were stolen.
Based on Arkham Intelligence’s report, approximately 137,892 Bitcoins belonging to the insolvent cryptocurrency exchange, worth around $9.2 billion, are currently in hold. Previously, it was known that Mt. Gox also managed Bitcoin Cash and regular currency. A portion of the fiat money has already been restored.
After a number of years, those who have been impacted can now begin to see a hopeful outcome. Some Mt. Gox creditors reportedly received notifications about their claims, suggesting that the authorities handling the exchange’s liquidation are working more quickly to return the estimated $9 billion in Bitcoin.
Based on what the creditors have shared, these updates contained details like the quantity of digital tokens that had to be surrendered and, in certain instances, repayment timelines.
Adam Back, the CEO of blockchain infrastructure company Blockstream, shared with Bloomberg that he’s been informed about tokens set for return, but is still waiting for specific return dates. This latest development has brought a sense of both reassurance and careful optimism among the community.
The trustee has announced that creditors will receive their initial, mid-level, and early payment installments by October 31st as the prolonged liquidation process progresses.
Potential impact on BTC price
The upcoming payout could cause anxiety about its effects on the Bitcoin market. Some think that a large-scale selling spree from lenders could lead to a decrease in Bitcoin’s price. In contrast, others are optimistic that the distribution will be smoothly integrated by the market with only minor repercussions.
Currently, Bitcoin (BTC) had decreased by 0.41% in the last 24 hours and was priced at $66,289. This was a significant jump from its previous record high of $73,798 reached in mid-March. In contrast, when Mt. Gox collapsed, Bitcoin’s value was significantly less than that.
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2024-04-23 14:18