The defunct exchange Mt. Gox is set to begin redistributing assets lost in its infamous 2014 hack this July.
According to an official notice on the Mt. Gox website, $9.4 billion in Bitcoin, $72 million in Bitcoin Cash, and $446 million in fiat currency will be disbursed during the process. However, the exact start date in July was not specified.
Notably, the exchange’s trustee, Nobuaki Kobayashi, has extended the deadline for this repayment schedule multiple times. The current deadline of October 31, 2024, was set after the Tokyo District Court extended the trustee’s request to move it from October 31, 2023, to September of the same year. Kobayashi’s reason was that so they could accommodate creditors registering their claims.
Meanwhile, in late May 2024, over $7.3 billion in Bitcoin was transferred by a wallet linked to Mt. Gox to an unknown wallet, stirring anxiety within the crypto community. This move, the first in five years, involved 107,547 BTC and caused Bitcoin’s price to drop by 2%. Former CEO Mark Karpeles, under his online moniker MagicalTux, reassured the community that the transfer was a preparatory step for the upcoming distribution, emphasising that no sale of bitcoins was planned.
Adding to the complexities of the situation, Mt. Gox has issued a warning regarding fraudulent emails targeting rehabilitation creditors. Reports have emerged of suspicious emails impersonating the “MTGOX Team,” containing false information. Creditors are urged not to follow any instructions in these emails. Mt. Gox has advised all stakeholders to refer to the official caution notice for detailed information on these scams.
The anticipated distribution comes amid a turbulent history for Mt. Gox. The exchange, which once facilitated over 70% of all Bitcoin trades, collapsed in 2014 following a significant security breach and alleged insolvency. Approximately 127,000 creditors were affected, losing 850,000 BTC in total.
With Bitcoin’s price hovering around $61,000, the market anticipates potential volatility as this substantial volume of Bitcoin returns to circulation. The actions of Mt. Gox creditors – whether they choose to hold or sell their assets – could have significant implications for the cryptocurrency market.
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