Mt Gox Initiates Debt Repayment with Bitcoin BTC and Bitcoin Cash BCH
The bankrupt exchange has begun repaying creditors through designated cryptocurrency exchanges, in accordance with the repayment plan.
Once the world’s largest cryptocurrency exchange, Mt. Gox, which collapsed in 2014, is now striving to repay its creditors. The repayment process started on July 5, 2024, involving funds in Bitcoin (BTC) and Bitcoin Cash (BCH). This marks a significant milestone in the exchange’s long bankruptcy proceedings, although concerns linger as $7 billion worth of Bitcoin remains in cold wallets, waiting to be distributed. Creditors receiving Bitcoin are feared to flood the market with sales, potentially further depressing Bitcoin prices.
“BTC 55K ETH 2900! The market continues to collapse, on-chain transactions surge, sentiment turns to fear.”
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Mt. Gox Begins Repayment to Creditors
Conditions for Future Repayments by Mt. Gox
The first batch of repayments is being made through designated cryptocurrency exchanges, in accordance with the repayment plan to certain creditors. A circulated official document (due to a broken official website link) outlines the repayment process and conditions.
“On July 5, 2024, the Trustee, according to the Rehabilitation Plan, made repayments in Bitcoin and Bitcoin Cash through certain designated cryptocurrency exchanges to certain creditors,” the document states.
For remaining creditors, repayments will proceed “promptly” upon meeting several conditions, including:
Account verification: Confirming the validity of creditors’ accounts to ensure payments to legitimate entities.
Acceptance of terms: Creditors must accept the intention of the proxy receipt agreement provided by designated cryptocurrency exchanges.
Security assurance: Ensuring all transactions proceed securely to prevent potential fraud or misuse of funds.
Completion of procedures: Finalizing discussions between the Trustee and exchanges regarding the repayment process to streamline proceedings.
Mt. Gox initiating debt repayment is a positive development for its long-suffering creditors, yet it may prove a painful process for the cryptocurrency trading market.
