Mt. Gox Initiates Bitcoin Repayment Process
Customers affected by the 2014 hack of Mt. Gox, a defunct Japanese cryptocurrency exchange, have received emails confirming their wallet addresses for the repayment process. The exchange is preparing to distribute Bitcoin and Bitcoin Cash to eligible account holders.
Identity Verification and Confirmation Procedure
Mt. Gox has started verifying wallet addresses of users who completed their identity verification processes. The rehabilitation trustee has shared customer details with the custodian to facilitate this process. However, customers with disabled or frozen accounts may not be eligible for the fund distribution program.
Repayment Deadline Extended
In September 2023, Mt. Gox extended its repayment deadline to October 31, 2024, in order to ensure proper disbursement of funds. In December 2023, the exchange mistakenly issued double payments to some users and urgently requested them to return the excess funds.
Potential Impact on BTC Price
The distribution of about 200,000 BTC to Mt. Gox creditors raises concerns about its potential impact on the crypto market. This amount exceeds the total value of Microstrategy and El Salvador’s Bitcoin holdings combined. If account holders sell off their reimbursements, it could cause a significant crash in Bitcoin’s price, potentially dipping below $20,000.
Hot Take: Mt. Gox’s Repayment Process Offers Hope to Former Customers
The progress made by Mt. Gox in its repayment process brings hope to former customers who suffered from the cyber theft incident almost a decade ago. While there are concerns about the potential market impact of the upcoming Bitcoin distribution, it is a step towards resolving the long-standing issue and providing restitution to affected individuals.
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