Mt. Gox, the Japanese Bitcoin exchange infamous for its collapse in 2014, is set to initiate repayments to its creditors beginning in July. The distribution will be made in the form of Bitcoin (BTC) and Bitcoin Cash (BCH).
Following the collapse, which led to extensive legal proceedings and recovery efforts, around 200,000 Bitcoins were eventually recovered by 2018. Since then, creditors have faced prolonged delays in receiving compensation amid the rehabilitation process overseen by a court-appointed trustee.
According to the latest update, starting in July 2024, the trustee will begin distributing BTC and BCH to the creditors. This distribution aims to reimburse users who suffered losses during the exchange’s downfall. The specific details of the repayment plan, such as the allocation ratio and timeline for completion, are eagerly anticipated within the cryptocurrency community.
Mt. Gox Owes Creditors 142,000 BTC
In May, Mt. Gox made headlines by transferring billions in Bitcoin, causing significant market repercussions. The exchange faces a debt of 142,000 BTC (worth over $9 billion) owed to its creditors, with a deadline for payout set before October 31, 2024.
Analysts from K33 Research, Anders Helseth, and Vetle Lunde, suggested in an April 23 market note that creditors might begin receiving their Bitcoin as early as May. The total outstanding debt to Mt. Gox’s 127,000 creditors includes $9.4 billion in Bitcoin, $72 million in Bitcoin Cash, and ¥69 billion ($445.8 million) in fiat currency.
The commencement of Bitcoin and Bitcoin Cash repayments by Mt. Gox represents a significant step forward in resolving a financial crisis that has persisted for over a decade.
Bitcoin Price Drops Below $62,500
Bitcoin has fallen below $62,500, marking its lowest point of the month, as the entire cryptocurrency market experiences one of its most severe weekly declines this year.
Amid a six-day period of withdrawals from US Bitcoin ETFs and uncertainty surrounding monetary policies, Bitcoin is currently trading near $62,490. Over the past week, its price has dropped by 6%.
