January 24, 2024

Mt. Gox Prepares to Unlock 200,000 Bitcoin for Creditor Repayments

Nearly a decade after the theft of 850,000 bitcoin from Mt. Gox, the crypto exchange is preparing to initiate the reimbursement process.

Recent reports indicate that Mt. Gox has reached out to creditors, requesting confirmation of their identity and the ownership of exchange addresses before releasing the long-awaited bitcoin repayments.

For the past ten years, Mt. Gox has consistently postponed plans to repay creditors the bitcoin that had been inaccessible since February 2014. However, a significant development has emerged, with multiple creditors receiving emails from the Mt. Gox trustee, aimed at finalizing identity verification details for crypto exchange accounts designated as payment addresses for both bitcoin (BTC) and Bitcoin Cash (BCH).

The focal point of concern stems from the substantial amount of BTC that Mt. Gox is rumored to be unlocking into the market. Market observers are on high alert as a potential release of 200,000 BTC looms in the next months.

It's worth noting that the amount of bitcoin slated for reimbursement to Mt. Gox creditors is comparable to the holdings of MicroStrategy, led by Michael Saylor. MicroStrategy currently possesses around 189,150 BTC, valued at approximately $7.6 billion at current prices after a December acquisition. The worry is that recipients of Mt. Gox payments may swiftly sell their bitcoin, potentially leading to a further decline in BTC prices.

Launched in 2010, Mt. Gox was once the world's largest exchange before falling victim to a hack in 2014. Despite the Tokyo-based platform recovering approximately 20% of the missing bitcoin, it has faced ongoing challenges in facilitating creditor repayments. In late December of the previous year, Mt. Gox initiated PayPal repayments, with some claimants reportedly receiving double payouts.

Adding to the complexity, the now-defunct exchange also holds about 143,000 BCH, intensifying speculation about the combined impact of the BTC and BCH release on the broader cryptocurrency market.

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