Mt.Gox to Begin Compensation Payments in July as Bitcoin Price Dips Below $62,000.

Mt.Gox, the cryptocurrency exchange that famously filed for bankruptcy in 2014, is preparing to start compensating its creditors in early July. The trustee overseeing the process has announced that payments will be disbursed in bitcoins, Bitcoin Cash, and cash, marking a significant milestone after years of legal and technical preparations.

This decision comes after rigorous regulatory compliance checks and extensive coordination with cryptocurrency exchanges worldwide. Payments will be prioritized for platforms that have completed necessary information verification, following a first-come, first-served approach.

The market reacted nervously to the news, with Bitcoin prices dropping below the $62,000 threshold amid heightened trading activity. Other cryptocurrencies also saw declines ranging from 1.7% to 3.4% within hours, according to data from CoinGecko.

Earlier in May 2024, Mt.Gox resumed transferring bitcoins for the first time in five years, signaling progress in resolving long-standing creditor claims. The confirmation of creditor addresses in January and initial fiat payments in April further paved the way for the forthcoming distribution.

Mt.Gox aims to finalize the asset distribution by October 31, 2024. However, experts from K33 Research have cautioned that potential bitcoin sell-offs by exchanges involved in the compensation process could create downward pressure on prices, influencing market sentiment.

The civil rehabilitation process for Mt.Gox users began in June 2018, receiving court approval for a compensation plan from a Tokyo court in 2021. $BTC $MAV $FTM

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