- The planned liquidation of Mt. Gox assets has further driven down already-falling crypto prices.
- Approximately 140,000 bitcoins will be liquidated to meet the July repayment schedule.
Bitcoin (BTC) and Bitcoin Cash (BCH) prices fell after the announcement for the planned liquidation of Mt. Gox assets.
Liquidators for Mt. Gox announced that they would begin distributing repayments to creditors in the first week of July.
The liquidators still hold about 137,892 bitcoins, according to the latest analysis.
Documents show that MT. Gox also had Bitcoin Cash and fiat money on its books.
Mt. Gox was once the biggest crypto exchange by far, handling more than 70% of all Bitcoin transactions in the world.
It was hacked on 6 separate occasions between 2011 and 2014, finally declaring bankruptcy in 2014.
Mt. Gox: A Decade-Long Crypto Saga
The Mt. Gox creditors have waited nearly a decade for the return of their stolen funds.
Mt. Gox declared bankruptcy in 2014 after their sixth security breach resulted in the loss of 850,000 bitcoins.
In the following decade, Mt. Gox was involved in lengthy and complex legal proceedings, which led to significant uncertainty for creditors.
It took until 2018 just for rehabilitation proceedings to begin.
Finally, in 2023, initial repayments were made from some of the fiat currency in Mt. Gox’s possession.
The repayment plan was in development for several years, but a Tokyo court ruling set a deadline for October 2024 to pressure the issue.
“The Rehabilitation Trustee will commence the repayments in Bitcoin and Bitcoin Cash in due course to the cryptocurrency exchanges with which the Rehabilitation Trustee has completed the exchange and confirmation of the required information for implementing the repayments.”
Nobuaki Kobayashi, Mt. Gox Rehabilitation Trustee, stated.
Some creditors claim to have received double their losses from the fiat currency repayments.
This greater than 100% repayment for creditors is reminiscent of the FTX bankruptcy, where creditors have benefited from the current crypto boom.
Over $9.4 billion worth of Bitcoin is owed to 127,000 creditors, so it remains to be seen how much each creditor receives in the end.
As in the case of the FTX bankruptcy, even creditors that receive more than their initial losses will argue that it hardly compensates for the decade-long delay.
Bitcoin and Bitcoin Cash Fall Further Among Tumbling Crypto Prices
The price of Bitcoin fell from around $62,300 to less than $62,100 immediately following Mt. Gox’s statement.
Overall, Bitcoin touched a low of $61,060, which is a drop of 6.5% from the same time the day before.
Bitcoin Cash dropped to a 9% low compared to the previous day.
Approximately $91 million worth of long Bitcoin derivatives trades have been closed in the last day as the Mt. Gox announcement piles on already tumbling crypto prices.
