Defunct crypto exchange, Mt. Gox, has announced that it will begin repayment to creditors by next month, July 2024. According to a released statement, the repayment will be made in Bitcoin (BTC) and Bitcoin Cash (BCH).
The new development is an important step the exchange takes to settle all pending debts owed following its widely publicized crash ten years ago, on February 18, 2014. The exchange pleads with users to be patient while the process is finalized and repayments are made.
Mt. Gox to Begin Payment Next Week
In a released statement dated June 24, Mt. Gox, which was previously based in Tokyo and one of the early cryptocurrency exchanges, said it will begin repayments to its creditors in the first week of July after a long period of preparation. The failed exchange stated that the repayments are in sight and that the rehabilitation trustee would begin the necessary arrangements for payments.
Additionally, the exchange stressed that it has collaborated with licensed cryptocurrency exchanges while adhering to global crypto financial regulations to ensure a smooth repayment process. Bitcoin and Bitcoin Cash will be released by the Rehabilitation Trustee to crypto exchanges that have completed the required information for implementing the repayments. The repayments will be made in a specific order depending on the confirmation with the cryptocurrency exchanges involved.
Recall that in May, some significant Bitcoin transactions were recorded from the Mt. Gox wallet passing through several channels. At the time, the crypto movements sparked discussions and raised speculation among crypto participants about the potential impact on the price of the coin.
With almost $10 billion in debt to be paid, Mt. Gox has pleaded for patience among creditors and other affected parties as they begin repayments as planned. The assets assigned for distribution include 142,000 BTC (worth $8.7 billion), 143,000 BCH (valued at $50.7 million), and 69 billion Yen ($432.5 million).
Meanwhile, expert market analysts have predicted a significant impact on the price of the tokens (Bitcoin and Bitcoin Cash) following the repayments. They predict that it will trigger high volatility especially if most of the coins are sold off by the creditors. This aligns with other predictions forecasting that the price of Bitcoin might drop to $60,000 shortly. At the time of writing, Bitcoin is trading at $61,377 and Bitcoin Cash is changing hands at $356.30.
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