Free Porn
xbporn

Bitcoin Repayments From Mt. Gox Begin, Will It Affect Price?

Share This Post


The rehabilitation trustee of the exchange Mt. Gox that went bankrupt in 2014, Nobuaki Kobayashi has published a new letter today regarding the repayments of the recovered Bitcoin. In it, Kobayashi informs that the deadline for creditors to submit their repayment information passed yesterday, April 6, 2023.

After several years of delays, the window thus opens for Bitcoin repayments, which are expected to be made by October 31, 2023. The letter also states that the rehabilitation trustee is currently making the necessary preparations for the repayments.

This includes, among other things, Kobayashi contacting banks, money transfer providers and cryptocurrency exchanges and custodians to clarify repayment arrangements:

[…] which include the confirmation of the selection and registration made by the rehabilitation creditors, as well as engaging in discussions and sharing information with banks, fund transfer providers and cryptocurrency exchanges or custodians involved in the repayment.

In light of this, the trustee also states that it is “expected to take some time before the repayment is commenced.”

The base repayment, interim repayment, and early lump sum repayment are currently scheduled for October 21, 2023, although the exact timing of repayment to individual redevelopment creditors has not yet been determined. In addition, the Kobayashi notes that the deadline for repayment may be extended with the approval of the Tokyo District Court, if necessary.

Remarkably, Luxembourg-based crypto exchange Bitstamp is one of four crypto exchanges selected by the Mt. Gox trustee to help with repayments. Bitstamp has repeatedly published guidance in recent weeks on what creditors should do to make their claims.

How Will It Affect The Bitcoin Price?

According to the rehabilitation plan, victims of the Mt. Gox hack will be reimbursed a total of 141,686 Bitcoin (BTC), about 143,000 Bitcoin Cash (BCH) and 69 billion yen. However, the amount of the refunds is still not clear. Creditors were able to choose whether to receive their claim in cryptocurrencies or fiat until the deadline.

In addition, the first 200,000 yen (around $1,520) of each creditor’s claim will be paid in yen, according to a moderator of the Mt. Gox bankruptcy Subreddit. If the claim is higher, creditors can choose between crypto and cash, receiving 71% back in crypto and 29% in cash after the first payment.

Therefore, the actual amount of Bitcoin that could actually put selling pressure on the market is difficult to predict. Notably, it should also be noted that the trustee is not dumping all Bitcoin on the market at once, but rather spreading it out over the period until the end of October.

The two largest creditors, Bitcoinica (a New Zealand-based crypto exchange) and the Mt. Gox Investment Funds have opted to have their bankruptcy funds paid out in Bitcoin. Estimates suggest that they represent 20% of all claims.

However, according to a Bloomberg report, Mt. Gox Investment Fund has already stated that they will keep their BTC and not sell it. Moreover, a Bitcoin price crash due to the Mt. Gox payouts seem rather unlikely at the moment, as the market is able to digest the low volumes despite historically low liquidity.

At press time, the BTC price was trading at $27,921.

BTC price, 1-hour chart | Source: BTCUSD on TradingView.com

Featured image from Chainalysis Blog, chart from TradingView.com



spot_img

Related Posts

WazirX breach post-mortem: Dismantling the $230M attack

0
The WazirX breach highlights vulnerabilities in multisig wallets despite stringent security measures, with hackers exploiting discrepancies in data.