Mt. Gox Compensates Over 17000 Creditors, What’s Next?

Defunct crypto exchange Mt. Gox has shown some encouraging signs of initiating the process of repaying the creditors after the exchange’s shut down in 2014. As of July 24, 2024, repayments in BTC and BCH have been made to over 17,000 rehabilitation creditors.

Mt. Gox Repayments Progress

In a statement released by Mt. Gox, the Rehabilitation Trustee has made Bitcoin and Bitcoin Cash repayments to some of the rehabilitation creditors through designated crypto exchanges. This is after similar repayments on the 5th of July and 16 of July 2024 respectively. The trustee has therefore to date paid over 17,000 creditors to the date of this report.

In the future, the repayments are made subject to a number of conditions such as validating the accounts in the register and agreeing to the Agency Receipt Agreement by the specified exchanges.

Concurrently, the agreements between the trustee and the exchanges must be concluded, and the repayments must be refined. Consequently, creditors who have not been paid should wait for further developments.

Bitcoin Market Response to Repayments

Ki Young Ju, the CEO of CryptoQuant, shared his thoughts on how the market reacted to the Mt. Gox repayments. He pointed out that, there hasn’t been much of an increase in the trading volumes or outflows on Kraken despite the repayments.

He stated that the Mt. Gox retail holdings will act similarly to the other retail holdings, and even if a part of the retail holdings is sold the current market condition can easily handle the volume without much affecting the prices.

Ju said that every time zone of the world has elapsed since the repayments started, and no drastic dumping of Bitcoin occurred. If there will be price decrease, it could not be attributed to Mt. Gox selling its BTC in the market since they In the public domain. He stated,

“Even if about 10% is immediately dumped, it is insignificant compared to the existing demand for Bitcoin. And even if 100% were to be dumped, it would not be significant unless it happens immediately.”

This is in agreement with Ju’s analysis based on recent market trends. In the past three weeks alone, the US spot ETF saw an inflow of $45,000, the market could contain the higher supply if sold gradually.

Bitstamp Begins Asset Refund Process

Concurrently, Bitstamp has initiated its asset refund process for Mt. Gox creditors. Today, creditors received Bitcoin, Bitcoin Cash, and Ethereum (ETH) from the Mt. Gox trustees. Distribution of these assets to customers is scheduled to commence tomorrow, with recipients expected to have full control within a week following necessary security checks.

However, UK customers will not be part of the initial distribution and can expect to receive their restored assets in the coming months. Bitstamp has committed to providing further information for UK customers in due course.

Despite the progress, some creditors have expressed dissatisfaction with the process. A recent discussion on a subreddit highlighted issues where some approved creditors with linked Kraken accounts have yet to receive their Bitcoin payments. Consequently, the community suggests Kraken should leverage its direct channel to Mt. Gox to provide general information about the delays.

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