Mt.Gox will start repaying debts in July, and the Bitcoin market will usher in new variables
On June 24, the rehabilitation trustee of Mt.Gox, a cryptocurrency exchange that was hacked and bankrupted, announced that it would gradually repay debts to creditors starting from early July 2024. This news immediately attracted widespread attention in the cryptocurrency market.
According to a letter released by the trustee, they have been preparing to use Bitcoin and Bitcoin Cash for repayment according to the rehabilitation plan. The repayment action has been carefully prepared to ensure the compliance and security of the entire process. In addition to technical guarantees, the trustee must also comply with the financial regulations of various countries and have in-depth communication with a number of cryptocurrency exchanges.
Repayment will be prioritized from trading platforms that have completed the necessary information exchange and confirmation process. Faced with the upcoming repayment process, creditors are advised to remain patient because the repayment of Bitcoin (BTC) and Bitcoin Cash (BCH) is in full swing.
Mt.Gox suffered a major hack in 2014, resulting in the theft of 850,000 bitcoins, which were worth up to $460 million at the time. This incident directly led to the bankruptcy of the exchange. For many years, many creditors have been looking forward to recovering some of their losses. Now, with the announcement of the repayment plan, their wait has finally seen the light of day.
However, this news also brought new variables to the Bitcoin market. Some large creditors chose to receive the recovery in the form of BTC in one lump sum, which means that a large amount of Bitcoin is about to enter the market. On-chain analysts had already noticed large BTC transactions related to Mt.Gox at the end of May and warned that this could bring selling pressure to the Bitcoin market.
As soon as this news came out, the market immediately raised concerns that a large influx of Bitcoin could lead to a market decline. Many industry insiders and analysts have expressed concerns about the market trend. Bitcoin miners have also been selling a large number of the asset recently. In June, miners sold more than 30,000 bitcoins, worth about $2 billion, the highest level this year.
Under the influence of this series of news, the price of Bitcoin has fluctuated sharply. The market’s reaction to Mt. Gox’s repayment plan will be the focus of attention next.
