Mt. Gox rehabilitation proposal will refund a total of 150,000 BTC to users, will the market dump?
The Mt. Gox has just proposed to compensate investors affected by the exchange hack in any year through the form of voting. Accordingly, this proposal will close for voting on October 8. For the proposal to pass, a minimum of more than 50% of the vote is required.
Source: Mt. Gox
User Mt. Gox actively votes for the refund proposal
Claimants are actively voting ahead of tomorrow’s October 8 deadline. But many of them still question whether the return terms are complete and accurate. These concerns are also understandable as they have suffered for so long since the hack lasted from 2014 to the present. And for the proposal to pass, a minimum of 50% of votes are needed to support the provisions.
The money recovery and investor compensation plans were first announced on May 31, 2021, after the Tokyo District Court issued the draft. And tomorrow will be the day to put an end to a massive shock of investors. The cashback amount can be up to a total of 150,000 BTC.
MT. Gox is a well-known name in the cryptocurrency market. It was initially one of the giants in the crypto space by pioneering and accounts for over 70% of all Bitcoin transactions. But then the exchange collapsed after a notorious hack.
In 2014, Mt. Gox announced that a large amount of BTC, worth $450 million, was likely stolen, and the exchange would close. This was the biggest crash to that point, causing the Bitcoin price to plummet. This is considered a pivotal moment in the market and is often seen as a case study.
Lessons for the cryptocurrency market
As the most significant exchange at the time, bankrupt due to a hack, Mt. Gox has become a lesson learned in the crypto market. Despite operating at a very early stage in the market, the exchange is proof that if there is an inadequate security system, everything will fall.
MT. Gox was initially developed by Ripple and co-founder of Stellar Lumens, Jed McCaleb. He then sold the platform to Mark Karpeles in March 2011. A few months later, many people claimed that their personal information had been leaked and put up for sale.
By 2014, regulators had received too many complaints from users and had to step in. At the same time, a large amount of BTC was stolen, causing the collapse of the exchange. The incident prompted exchanges to adopt more robust security measures and attracted more attention to the crypto market. Today’s trading platforms are much more focused on data protection lest a similar fate befall.
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