Mt. Gox, the infamous Japanese cryptocurrency exchange that was hacked in 2014, is finally making progress in paying back its creditors. On March 10, 2023, the first batch of Bitcoin (BTC) repayments will be made to some of the exchange’s creditors who have chosen to receive compensation in BTC instead of waiting for a potentially higher payout in the future.
The news has sparked concerns among the crypto community, especially after the recent instability in Silvergate Bank that caused the price of Bitcoin to plummet to $21,971 USD on March 3.
The exact amount of BTC that will be unlocked in this first batch of repayments remains unknown. According to the exchange’s balance sheet, the trustee of Mt. Gox currently holds 142,000 BTC, 143,000 BCH, and JPY 69 billion (equivalent to $510 million USD). The repayments will come from these assets, but it is unclear how many creditors have chosen to receive BTC and how many will wait for a higher payout.
It is worth noting that the two largest creditors, Bitcoinica and MtGox Investment Fund (MGIF), account for about one-fifth of the total compensation demand. The CEO of Blockstream, Adam Back, who is also a creditor of Mt. Gox, sees the repayments as a long-awaited profit after holding the coins in cold storage for years.
The Mt. Gox case has been ongoing for more than nine years, and the repayment of BTC to creditors has been viewed as a “slow bomb” for the crypto market, as the value of BTC has increased significantly since 2014. However, it is unlikely that creditors will hold onto their BTC for long, given the lengthy legal battles they have faced.
Overall, the upcoming repayments are a significant step forward for Mt. Gox, and many hope that they will bring some closure to the long-standing case. As more repayments are expected in the future, the crypto community will be watching closely to see how the situation unfolds.
Read more:
- Mt. Gox To Recover Funds After More Than 10 Years: Should Investors Be Worried?
- UBS Analysts Don’t Anticipate Major Fallout From Mt. Gox Repayments