Anybody want to go back to the year 2014? That was the year this story began.
Back then, Mt. Gox was one of the big crypto exchanges, with investors coming in by the swarms. One security breach later, the mountain came crashing down. The $63.6 million worth of BTC in 2014 was lost. Fast forward to today’s prices, that loss is worth $46 billion.
Related: What's Happened with Bitcoin price? Analysts Predict that Worst Case Scenario Still Possible
It was shocking when Rehabilitation Trustee Nobuaki Kobayashi announced that old Mt.Gox creditors would be paid in Bitcoin and Cash in July. The repayment initiative seems to stem from Mt. Gox’s bankruptcy proceedings following the tragic loss of 850,000 BTC. However, the investors who are getting their money back are certainly not complaining.
July has come now, and Mt. Gox seems to have kept to its word and put its money where its mouth is. In a now-deleted announcement statement, Mt. Gox said:
On July 5, 2024, the Rehabilitation Trustee made repayments in Bitcoin and Bitcoin Cash to some of the rehabilitation creditors through a part of the Designated Cryptocurrency Exchanges, following the Rehabilitation PlanBut in case there are any Mt. Gox creditors reading this, don’t start jumping for joy yet because they are not just sharing the money with every Tom, Dick, and Harry claiming to be one of the investors entitled to the repayment. Mt. Gox has mentioned that Creditors must meet several conditions before any further repayments are made.
Every Mt. Gox creditor must pass through a series of checkpoints before getting their share of the disbursements. These checkpoints include validating the authenticity of the registered account and finalizing agreements with the involved crypto exchanges.
In another very “hold your horses” statement, Mt. Gox also highlighted that they are doing their best to ensure that all repayment transactions done so far are secure and verified before they move on to subsequent repayments. In light of this, they have urged all their unpaid creditors to “chill out” or, as they put it, “be patient” because everyone will get their turn.
Some skeptics might think Mt. Gox’s announcements are false. This next bit might cheer you up. Arkham (the cryptocurrency analytics firm, not the fictional asylum) reported that Mt. Gox had transferred 47,228 BTC, worth approximately $2.71 billion, from its cold storage to a new wallet. This still leaves over 147,687 BTC, valued at $7.69 billion, in Mt. Gox’s reserves.
More Info: Mt. Gox Moves $9 Billion in Bitcoin. What Does It Mean for the Market?
Apparently, the Bitcoin market did not take kindly to the repayment news because, after the announcement, BTC has now plummeted to $54,500, its lowest in the past four months. BTC Cash also decreased by over 18% in the past 24 hours. While Mt. Gox will be happy in the coming days, other Bitcoin investors will not be so pleased with the new price drop. The Mt. Gox story has always been filled with a mountain of dramatic news, and this one does not disappoint.
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