Mt. Gox Begins $8.2 Billion Bitcoin Payouts: Around 99% of Creditors Expected to Take Billions in Bitcoin Profits ASAP🐻
The long-awaited repayment process for Mt. Gox creditors has finally started, with payments being made in Bitcoin and Bitcoin Cash.
This move comes after the November 2021 approval of the rehabilitation plan, supported by the majority of Mt. Gox creditors.
Trustee Nobuaki Kobayashi confirmed that eligible claimants will start receiving compensation after enduring delays since the exchange's 2014 collapse. The balance to be repaid stands at $9 billion, including Bitcoin, Bitcoin Cash, and additional funds held by the trustee.
Analysts predict that most of the Bitcoin being repaid will likely be sold, potentially adding $8.2 billion worth of selling pressure on Bitcoin's price. Finance analyst Jacob King noted that on-chain movements already indicate some creditors have started selling.
The repayments raise concerns about Bitcoin’s price, which has been struggling to gain traction and recently fell 3.9% to $55,250. The world's first cryptocurrency is down over 10% on the weekly chart.
Despite the potential selling pressure, the repayments are a positive development for the industry and the defunct exchange’s users.
Former Mt. Gox CEO Mark Karpelès expressed his satisfaction in a July 5 post:
“Mt. Gox customers have finally started receiving Bitcoins! After over 10 years I wasn’t sure anymore if it’d finally happen, but here we are finally!! This has been a long journey and I’m happy to see we’re finally getting there, only a bit more.”
More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 Mt. Gox creditors who have been waiting for over 10 years to recover their funds.
Considering that Bitcoin's price has increased by over 8,500% during the past decade, many creditors will likely lock in profits. Around 99% of the creditors to sell their BTC the moment they get it. Billions worth of Bitcoin about to be dumped gradually over the next several weeks.🐻
