Mt. Gox Plans to Start Paying Creditors in Bitcoin and Bitcoin Cash in July
By Tanzeel Akhtar
Updated: June 24, 2024, 06:15 EDT
| 1 min read
Following the infamous collapse in 2014, Mt. Gox, the Japanese Bitcoin exchange, is set to distribute repayments to its creditors in the form of Bitcoin and Bitcoin Cash starting next month.
The collapse of Mt. Gox led to years of legal battles and efforts to recover the lost assets. In 2018, around 200,000 Bitcoins were recovered, leading to a lengthy rehabilitation process under the supervision of a court-appointed trustee. Creditors have been eagerly awaiting compensation, but numerous delays have slowed down the process.
The latest update reveals that the rehabilitation trustee will begin the repayment process in July 2024, distributing BTC and BCH to creditors.
This distribution aims to compensate users who lost their funds during the collapse. The details of the repayment plan, including the proportion of assets to be distributed and the timeline for completion, are being closely monitored by the crypto community.
Mt. Gox Owes Creditors 142,000 BTC
In May, Mt. Gox moved billions in Bitcoin, causing a ripple in the market. It is estimated that the exchange owes its creditors 142,000 BTC (worth over $9 billion), which must be paid out by October 31, 2024.
There were suggestions that creditors might start receiving their Bitcoin in May, according to a market note from K33 Research analysts Anders Helseth and Vetle Lunde on April 23. The outstanding debt to Mt. Gox’s 127,000 creditors amounts to over $9.4 billion in Bitcoin, $72 million in Bitcoin Cash, and $445.8 million (69 billion Japanese yen).
The commencement of Bitcoin and Bitcoin Cash repayments by Mt. Gox represents a significant step in resolving a financial debacle that has spanned over a decade.
Bitcoin Price Drops Below $62,500
The price of Bitcoin has fallen below $62,500 as the entire crypto market experienced one of the worst weekly drops of the year.
Bitcoin is currently trading at its monthly low of nearly $62,490 amidst a six-day streak of outflows from US Bitcoin ETFs and uncertainty over monetary policies. The price of Bitcoin has decreased by 6% in the last seven days.
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