Mt. Gox to Commence BTC and BCH Refund Procedure
The defunct cryptocurrency exchange, Mt. Gox is finally set to commence its repayment process after its closure in 2014. Mt. Gox, the defunct Japanese-based cryptocurrency exchange said it will soon commence the distribution of its stolen customer’s funds, moved from its account since 2014.
This was made known in a notice sent to the company’s customers on Monday by Nobuaki Kobayashi, the company’s Mt. Gox Rehabilitation Trustee. The company is slated to start the distribution of assets to creditors after many postponements. Mt. Gox, in its message to its customers, said it will be repaying $9 billion In Bitcoin Cash (BCH) and Bitcoin (BTC).
At one point in time, Mt. Gox handled more than 70% of all Bitcoin transactions, making it the largest exchange in the world. But at the beginning of 2014, the exchange abruptly stopped accepting orders, shut down its website, and declared bankruptcy.
This development resulted in intense regulatory scrutiny and a decline in trust in the nascent digital currency sector. A protracted legal and administrative procedure was initiated in the wake of the collapse to regain the lost assets and pay the impacted users.
Company Says Repayment To Be Made According to Amount Owed
The repayment process will be made according to the amounts owed to each creditor as established by last year’s claims process. Repayments will be made in Bitcoin and Bitcoin Cash, in line with Mt. Gox’s procedure. The August 2017 Bitcoin fork, which gave Bitcoin holders an equal quantity of Bitcoin Cash, is what led to the decision to use Bitcoin Cash.
Creditors have received assurances from the trustee’s office that the procedure will be transparent and that all required precautions have been taken to safeguard the distribution’s integrity. The cryptocurrency market has been impacted by the statement.
According to Jessica Tran, a cryptocurrency market expert, in her comment, said that “While the distribution of Mt. Gox’s Bitcoins is a long-anticipated event, it introduces a substantial amount of Bitcoin into the market.” Short-term volatility may occur, depending on how soon creditors decide to sell their shares.
Former Mt. Gox Clients Speaks, Expresses Excitement
A former Mt. Gox customer, Alex Kim, while reacting to this development, said “It’s been a long and frustrating journey, but receiving these repayments is a relief. Despite everything, the result is far better than I could have imagined, given the value of Bitcoin now in comparison to the time of Mt. Gox’s collapse.”
The bitcoin market will be affected more broadly by the outcome of the Mt. Gox case. Mt. Gox, before its sudden closure, was one of the leading cryptocurrency exchanges recording more than 70% of total Bitcoin transactions before getting hacked in 2014.
The hacker stole a total of 740,000 Bitcoin, worth $15 billion as at the time of the event. The company has been procrastinating on refunding its customers for years, with so many contradictions in the process that always lead to numerous postponements.
Price of Bitcoin and Bitcoin Cash Dips Hours After Announcement
However, the company has finally declared it will be commencing the refund process, with the deadline on October 2024, as requested by a court in Tokyo. Kobayashi, while explaining the procedure, said the repayment would start from the first week of July to ensure strict safety measures.
Meanwhile, the price of Bitcoin dropped a few hours after the event was made public, dropping to $61,000, while Bitcoin Cash dropped by 9% within 24 hours to trade at $352.86 according to data from CoinMarketCap.
It is also believed that the repayment process may likely encourage selling pressure on the Bitcoin market as soon as Mt. Gox investors start getting back their funds which will be coming in much higher values if they lose them.
With about $10 billion in debt, yet to be paid, the company has requested that creditors exercise some patience promising a seamless repayment process. The assigned assets for distribution are 142,000 BTC, valued at over $8.7 billion, 143,000 units of BCH valued at $50.7 million, and 69 billion Japanese Yen, worth approximately $432.5 million.
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