According to U.Today, the defunct cryptocurrency exchange Mt. Gox, which once processed 70% of all global Bitcoin transactions, is reportedly nearing the distribution of $9 billion worth of Bitcoin to its creditors. This development signifies a significant milestone in one of the most complex narratives in cryptocurrency history. Mt. Gox, once the largest Bitcoin exchange in the world, suffered a hack in 2011 and filed for bankruptcy in 2014. The fallout from the collapse had a profound impact on the cryptocurrency industry, with many investors losing substantial amounts of Bitcoin.
Arkham Intelligence reports that the bankrupt cryptocurrency exchange holds approximately 137,892 Bitcoin, valued at $9.2 billion. Earlier records showed that Mt. Gox also possessed Bitcoin Cash and fiat currency, some of which has already been returned. After several years, affected individuals are beginning to see a resolution. Some Mt. Gox creditors have reported receiving updates on their claims, suggesting that officials are accelerating efforts to distribute the $9 billion Bitcoin cache.
These updates reportedly include information such as the number of digital tokens to be returned and, in some instances, repayment deadlines. Adam Back, CEO of blockchain infrastructure firm Blockstream, confirmed to Bloomberg that he has received updates on tokens due for return but is still awaiting dates. The community has reacted to this development with a combination of relief and cautious optimism.
The trustee has announced that creditors should receive base, intermediate, and early lump-sum payments by October 31 as the extended winding-up process continues. However, the impending payout has sparked debate about its potential impact on the Bitcoin market. Some speculate that a large-scale sell-off by creditors could put downward pressure on Bitcoin prices, while others argue that the market would absorb the distribution with minimal impact.
At the time of the report, Bitcoin had fallen 0.41% in the previous 24 hours to $66,289, having reached a record high of $73,798 in mid-March. When Mt. Gox collapsed, Bitcoin was worth only a fraction of its current value.
