Mt. Gox, the once-dominant cryptocurrency exchange that went bankrupt in 2014 after a massive hack, has begun repaying creditors in Bitcoin (BTC) and Bitcoin Cash (BCH). This long-awaited development marks a significant milestone in the ongoing rehabilitation process but has also sparked volatility in the crypto market.
The repayments are being distributed through designated cryptocurrency exchanges according to a pre-determined rehabilitation plan. However, only a select group of creditors have received their funds so far. The trustee overseeing the process has emphasized that further payouts will be contingent on fulfilling specific criteria, including account verification, exchange agreements, and finalized discussions with Mt. Gox.
This news follows Mt. Gox’s movement of a substantial amount of Bitcoin (nearly 47,228 BTC) earlier on the same day. Subsequent transactions, including a transfer to a hot wallet on Bitbank exchange, fueled speculation about the impending repayments.
The market reacted swiftly to the news, with Bitcoin experiencing a significant drop in price. At one point, the leading cryptocurrency dipped below $54,000, representing a 7.6% decrease within 24 hours. Analysts attribute this decline to the potential selling pressure exerted by creditors receiving their BTC.
The broader crypto market also felt the tremors, with Coinglass data indicating over $665 million in liquidations across centralized exchanges during the same period. As Mt. Gox continues its payout process, the coming days may see further fluctuations in the cryptocurrency market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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