Crypto exchange Mt Gox launches Bitcoin repayments to creditors

Mt Gox, formerly the world's largest crypto exchange, has begun repaying its debts in Bitcoin (BTC) and Bitcoin Cash (BCH). According to the reorganization plan, repayment will be made via other crypto exchanges, where the affected creditors can recover lost funds. Customers of the Tokyo-based exchange have had to wait around 10 years to get their investments back.

According to information from MtGoxBalanceBot on X, 47,288 BTC of the total 94,457 BTC to be repaid have now been transferred. The total amount of Bitcoins invested is even higher. Ultimately, Mt. Gox owes the creditors around 140,000 Bitcoins, which is around 0.7% of the total 19.7 million Bitcoins currently in circulation.

Once the market-leading crypto trading venue, Mt Gox had to file for insolvency in February 2014. After up to 950,000 Bitcoins disappeared due to technical problems, irregularities and alleged hacks, Mt. Gox filed for creditor protection on February 28, 2014.

The company claimed that a technical error in transaction processing and a hacker attack had led to the disappearance of the Bitcoin. Mark Karpelès, the CEO responsible for Mt. Gox at the time, was later charged with data manipulation and embezzlement and sentenced to probation in 2019.

Investment with a 9,000 percent increase in value

After filing for insolvency, 140,000 of the missing bitcoins were recovered. As a result, bitcoins with a current value of around 9 billion US dollars were returned to their owners. At the time of the insolvency, Bitcoin was trading at around 600 US dollars; today it is worth more than 54,000 US dollars, which corresponds to an increase of almost 9,000 percent.

CNBC reports that analysts expect severe price turbulence. Mt. Gox's repayment plan is likely to lead to heavy selling in Bitcoin. However, these sell-offs are likely to be short-lived and will only precede further price gains later this year and in early 2025, according to analysts.

"Many will cash out and enjoy the fact that their assets in the Mt. Gox bankruptcy were the best investment they ever made," said John Glover, former managing director at Barclays. "Some will take the money and leave the market," Glover summarized.

Bitcoin fell to a four-month low last Friday. As Wallstreet Online reports, traders fear further selling as the outflow of tokens through Mt. Gox will continue for some time.

(nie)