Mt. Gox said on Friday that it has started repayments to customers, ending a near 10-year long wait for some users to get their crypto back.
The defunct crypto exchange was once the world’s top crypto exchange, handling over 70% of all bitcoin {{BTC}} transactions in its early years.
The exchange went bankrupt after a hack in early 2014 resulting in the loss of an estimated 740,000 bitcoin.
The news of the repayments added selling pressure on bitcoin and the larger crypto market after Mt. Gox announced last month its intention to start repayments in July.
"Mt. Gox moved 47,228 BTC, signaling the start of their repayment process, which has caused some market fear due to the large potential sell-off...However, it's worth noting that despite these concerns, the long-term impact may be less severe as the market gradually absorbs the selling pressure," said Willy Chuang, COO of crypto exchange WOO X.
Bitcoin plunged to $54,000 earlier during the day, its lowest level in five months. The freefall led to over $580 million in bullish bets being liquidated.
UPDATE (July 5, 06:40 UTC): Adds additional information and market background.
UPDATE (July 5, 07:00 UTC): Adds analyst comment.