The infamous crypto exchange, Mt. Gox, plans to commence repaying its creditors by July 2024, almost ten years following the loss of 850k Bitcoin (BTC) in a severe hack. An official notice from the rehabilitation trustee stated that Bitcoin and Bitcoin Cash (BCH) repayments will soon begin to be processed by crypto exchanges that have completed the required preparations. The trustee stressed the effort put forth to ensure secure and compliant repayments in different jurisdictions.
Amidst the current market prices, there is an estimated distribution of 141,868 BTC valued at $8.5 billion, along with an equivalent amount of BCH valued at $50 million. This massive inflow of Bitcoin into the market has started discussions regarding potential price impacts.
Mt. Gox, formerly the leading figure in handling more than 70% of Bitcoin transactions, faced a downfall in 2014 due to the loss of user funds estimated at $51.9 billion at today’s prices. The platform survived a series of six cyber breaches spanning from 2011 to 2014. The process of repaying the debt has encountered several delays since missing the initial deadline set for Oct 2023. While viewed as a step forward; doubts linger regarding potential future obstacles.
Analyst insights on Bitcoin market movements
However, creditors find hope in the announcement, but some analysts cautioned. In an X post, analyst Kyle Chasse emphasized the vast magnitude of the distribution, labeling it “MASSIVE.” Chasse estimates the distribution to involve 141,868 BTC, valued around $8.5 billion, and an equivalent sum in BCH of roughly $50 million.
Meanwhile, a technical analyst, Seth, observed a notable surge in Bitcoin’s Open Interest alongside a sudden increase in spot volume. These movements hint at the possibility that market participants are responding to the recent news of Mt. Gox repayment.
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