The Tokyo-based Bitcoin exchange, Mt. Gox, has recently announced its plans to release a substantial amount of Bitcoin (BTC) into the market. This move signals the long-awaited disbursement of payments to creditors who had suffered losses due to a hack attack that occurred back in 2011.
Reports from Reddit indicate that the Kraken Bitcoin (BTC) and Bitcoin Cash (BCH) API interface have shown signs of Mt. Gox preparing to release its significant cryptocurrency and fiat holdings. These holdings include 142,000 BTC, 143,000 BCH, and 69 billion yen. The interface started showing “payment in preparation” as of May 13, hinting at the imminent distribution of funds to creditors, with a set date of October 31, 2024.
The decision to disburse funds comes after years of legal battles and negotiations to compensate creditors who faced losses following the hack of Mt. Gox in 2011. The exchange was targeted by hackers, resulting in the loss of 850,000 BTC, which is now valued at over $51 billion. Subsequently, Mt. Gox filed for bankruptcy and has since been working to gather funds for creditor reimbursement.
Some customers have reported receiving fiat currency payments from the exchange. A Reddit user shared in April that they had received USD payments in an HSBC currency account without incurring any fees. While this development is positive news for creditors, the release of such a large volume of Bitcoin could potentially impact the current Bitcoin market.
The looming disbursement of Mt. Gox’s Bitcoin holdings has sparked discussions about how it could influence the market. There are concerns about whether creditors will sell off their Bitcoin once they receive their funds or choose to retain them. The possibility of a mass sell-off could lead to significant market fluctuations, potentially causing a market crash.
Some members of the Reddit community have voiced their opinions on Mt. Gox’s distribution plans. One user suggested that the upcoming repayments could trigger a large-scale sell-off, potentially leading to a “BTC dump” in 2024. However, another user expressed skepticism about the likelihood of such a scenario, noting that investors who have waited for over a decade to receive payments are more likely to hold onto their Bitcoin assets.
The impending disbursement of Mt. Gox’s Bitcoin holdings represents a significant step towards closure and recovery for victims of the exchange’s hack and subsequent bankruptcy. While the market remains cautious about the potential impact of this move, creditors await the distribution of funds with a mix of anticipation and apprehension. Only time will tell how this development will shape the future of the Bitcoin market.