Exciting News for Mt. Gox Creditors
Good news for Mt. Gox creditors as the Japanese Bitcoin exchange has commenced distributing repayments to its creditors in the form of Bitcoin and Bitcoin Cash today. Read on for more details!
The exchange announced earlier on its website that it had started making repayments to some creditors, while others will have to wait before receiving their payments. The post has since been removed, but the distribution process is underway.
Repayments Initiated After Lengthy Legal Battles
After a decade since Mt. Gox’s collapse, the repayments are finally underway. The exchange’s collapse in 2014 triggered a series of legal battles and recovery efforts to retrieve the lost assets.
In 2018, around 200,000 Bitcoins were recovered, kickstarting a lengthy rehabilitation process overseen by a court-appointed trustee. Creditors have been eagerly awaiting compensation, with various delays prolonging the process.
Recent Distribution Targets Affected Users
The latest distribution is aimed at compensating users who suffered losses during Mt. Gox’s collapse. The crypto community is closely monitoring the repayment plan’s specifics, including the assets’ distribution proportion and the timeline for completion.
Recently, Mt. Gox transferred a significant amount worth $2.7 billion to a new wallet address, marking a milestone since May. This follows several smaller test transactions carried out earlier.
Market Reaction: Bitcoin Price Dip
Despite the positive development of repayments being initiated, the price of Bitcoin has dipped to around $54,300, reflecting a 7% decrease in the last 24 hours.
Analysts at K33 Research caution that injecting such a substantial amount of Bitcoin back into the market could exert downward pressure on Bitcoin’s value.
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