The correction in Bitcoin (BTC) and crypto markets is deepening following news that former crypto exchange Mt. Gox plans to distribute approximately $9 billion worth of digital assets.
According to crypto data aggregator Coinglass, over $313 million in positions were liquidated in the past 24 hours, most of which were by long BTC and Ethereum (ETH) traders.
Mt. Gox was once the world's largest bitcoin exchange, but suddenly went bankrupt and “lost” most of its coins due to theft.
While the exchange eventually recovered most of its holdings and is undergoing a lengthy bankruptcy process to repay former customers, it remains a source of great uncertainty in the market, given that selling BTC to repay creditors could lead to increased selling pressure.
Now, Mt. Gox said in a statement that repayments in BTC and Bitcoin Cash (BCH) are expected to begin in early July.
“We have taken the time to ensure safe and secure repayment to creditors, including implementing technical measures for safe repayment, complying with financial regulations in each country, and negotiating repayment agreements with cryptocurrency exchanges.
“We will begin repayments in the order in which the trustee has completed the exchange and confirmation of necessary information for the virtual currency exchanges. Please wait a little while until repayment is completed.”
When the coin movement was discovered in May, former Mt. Gox CEO Mark Karpeles also revealed that preparations were underway for a possible distribution later this year.
“As far as I know, there are no issues with Mt. Gox. The trustees are moving the coins to separate wallets in preparation for distribution later this year, and no Bitcoin sales are imminent.”
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