Mt Gox Initiates Debt Repayment Using Bitcoin BTC and Bitcoin Cash BCH
The bankrupt exchange has begun repaying creditors through designated cryptocurrency exchanges according to its repayment plan.
Formerly the world’s largest cryptocurrency exchange, Mt. Gox collapsed in 2014 and is now striving to settle its debts. The repayment process commenced on July 5, 2024, involving funds distributed in Bitcoin (BTC) and Bitcoin Cash (BCH). This marks a significant milestone in the exchange’s long bankruptcy proceedings. However, with $700 million worth of Bitcoin still held in cold wallets awaiting distribution, market sentiment remains low amid concerns that creditors receiving Bitcoin may flood the market with sell-offs, potentially driving down Bitcoin prices.
“BTC 55K ETH 2900! Market continues to collapse, on-chain transactions surge, sentiment turns to fear.”
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Mt. Gox Begins Repayment to Creditors
Mt. Gox’s Future Repayment Conditions
The first batch of repayments is being made to certain creditors through designated cryptocurrency exchanges, in accordance with the repayment plan outlined in a circulated official document (due to a broken official website link).
“On July 5, 2024, the trustee commenced repayments to certain creditors through specified cryptocurrency exchanges as per the repayment plan, utilizing Bitcoin and Bitcoin Cash.”
For remaining creditors, repayments will proceed “promptly” upon meeting several conditions:
Account verification: Validating creditor accounts to ensure payments are made to legitimate entities.
Acceptance of terms: Creditors must agree to the intent of the agency receipt protocol provided by designated cryptocurrency exchanges.
Security assurance: Ensuring all transactions are securely conducted to prevent potential fraud or misuse of funds.
Process completion: Finalizing discussions between the trustee and exchanges regarding the repayment process to streamline proceedings.
Mt. Gox’s initiation of debt repayment represents a positive development for its long-suffering creditors, though it may prove to be a painful process for the cryptocurrency trading market.
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Further Reading
Mt. Gox Moves Another $148 Million in Bitcoin to Bitbank Exchange
Bitcoin Falls Below $57K, Institutional Selling Sparks Market Panic, Sonny Koo Says Willing to Take Over
