The bankrupt exchange has started to repay its debts to creditors according to the repayment plan through designated cryptocurrency exchanges.
Mt. Gox, once the world's largest cryptocurrency exchange, is struggling to repay creditors after collapsing in 2014. The repayment process begins on July 5, 2024, and involves disbursing funds in Bitcoin (BTC) and Bitcoin Cash (BCH). This represents an important milestone in the exchange's long-term bankruptcy proceedings, but at the same time, there are still US$7 billion of Bitcoins in cold wallets waiting to be distributed, making the overall market sentiment quite low, as they are worried that creditors who receive Bitcoins will use them in the market. A large number of sales have caused the price of Bitcoin to continue to fall.
(BTC 55K ETH 2900! The market continues to collapse, on-chain transactions surge, and sentiment turns to fear)
Mt. Gox is starting to pay off creditors
The first tranches of repayments are being paid to certain creditors under the repayment plan through designated cryptocurrency exchanges. An official document circulating (because the official website link has expired) outlines the repayment process and conditions.
“On July 5, 2024, the repayment trustee repaid some creditors in Bitcoin and Bitcoin Cash through some designated cryptocurrency exchanges according to the repayment plan,” the document reads.
Conditions for future repayments by Mt. Gox
For remaining creditors, repayment will occur "immediately" upon fulfillment of certain conditions. These conditions include:
Account Verification: Confirms the validity of a creditor's account to ensure payment is made to a legitimate entity.
Acceptance Terms: The creditor must accept the intention to accept the agency receipt agreement provided by the designated cryptocurrency exchange.
Security Guarantee: Ensure all transactions are conducted securely to prevent potential fraud or misuse of funds.
Completing the process: Complete discussions between the repayment trustee and the exchange on the repayment process to streamline the process.
Mt. Gox starting to pay down its debt is a positive development for its long-suffering creditors, but it may be a painful process for the crypto trading market.
The article Mt. Gox begins paying off debt with Bitcoin BTC and Bitcoin Cash BCH appeared first on Chain News ABMedia.