Mt. Gox, once the world's largest Bitcoin exchange before shutting down in 2014 following a series of hacks, has begun paying back the billions of dollars in BTC it owes customers. However, the deadline to complete that process has been pushed back, and Bitcoin's price has since risen.
After falling below $59,000 on Thursday, Bitcoin is now above $62,200, up nearly 3% in the past 24 hours. Traders said a delay in Mt.Gox's repayments could reduce selling pressure on the market as billions of dollars worth of bitcoin could stop flowing to users who might dump it for cash. They may be reacting to the idea that there is.
In a notice posted on Thursday, the Mt Gox Regeneration Team said that due to various issues, with the permission of the court, the repayment period will be extended for a full year from October 31 of this year to the same date in 2025. announced that it would be extended. up during the process.
“Many rehabilitated creditors have not yet completed the necessary procedures to receive repayments and are therefore still not receiving repayments,” the memo to creditors states.
“Also, a significant number of rehabilitation creditors have not been able to receive repayments for a variety of reasons, including problems that arise during the repayment process,'' he added, without mentioning the nature of the “problems.''
Investors may interpret the new repayment schedule as bullish. That's because it means Mt. Gox users looking to recover large amounts of hidden wealth won't sell it, at least not yet.
When there were coins distributed for the first timeBitcoin prices fell as traders expected Mt. Gox's creditors to liquidate their BTC.
Cryptocurrency exchanges Kraken, Bitstamp, Bitbank, SBI VC Trade, and BitGo are responsible for distributing coins to former Mt. Gox customers. Back in July, Bitstamp and Kraken announced They had started distributing digital assets, but it is currently unclear exactly how much cryptocurrency was paid back.
Back in 2014, the price of Bitcoin was less than $500, so customers who lost money in the Mt.Gox hack would have made huge profits.
The exchange also distributes other cryptocurrencies that were lost in the hack. bitcoin cash and Ethereum.
Mt.Gox is a Japanese cryptocurrency exchange used by early Bitcoin investors. Ten years ago, it was forced to shut down after a number of hacks. The criminals discovered security vulnerabilities in the exchange and made off with a total of 850,000 Bitcoins (now worth $52.8 billion).
Rehabilitation suggestions are approved In 2021, the company promised to compensate affected customers for about 90% of the assets owed. The out-of-pocket investor then had to: file Last year, it asked for the funds to be returned.
Law enforcement was able to recover just 140,000 Bitcoins to repay creditors.
Editor's note: This article was updated with additional details after publication.
Edited by Andrew Hayward
daily report meeting Newsletter
Start each day with the current top news stories, plus original features, podcasts, videos, and more.
