Mt. Gox, the crypto exchange from which 850,000 bitcoin (BTC) was stolen nearly a decade ago, is getting ready to commence reimbursements of BTC as it reportedly reached out to creditors to confirm their identity and the ownership of exchange addresses.
This move comes after Mt. Gox initiated PayPal repayments in December 2023.
Will The 200,000 BTC From Mt. Gox Bitcoin Flood The Market Soon?
Over the last decade, Mt. Gox has continually delayed plans to refund its creditors the Bitcoin the crypto exchange had blocked them from withdrawing since February 2014.
This could change soon as multiple creditors have received emails from the Mt. Gox trustee seeking to square away details of identity verification for crypto exchange accounts designated as payment addresses for Bitcoin (BTC) and Bitcoin Cash (BCH).
The major concern arising from this development is the sheer volume of BTC that Mt. Gox is rumored to be unlocking into the market. Market observers are especially alert as the countdown starts for a likely 200,000 BTC release in the next two months.
Notably, the amount of Bitcoin that is to be reimbursed to Mt. Gox creditors is comparable to the holdings of Michael Saylor’s MicroStrategy, which currently holds approximately 189,000 BTC (worth some $7.4 billion at today’s prices) in its treasury after the December purchase. The concern is that those receiving payments from Mt.Gox will immediately sell, driving the price of BTC further down.
Mt. Gox, launched in 2010, was the world’s largest exchange when it was hacked in 2014. The Tokyo-based platform was ultimately able to recover around 20% of the missing Bitcoin. Mt. Gox started PayPal repayments in late December last year, with some claimants receiving double payouts.
The now-defunct exchange also holds roughly 143,000 in Bitcoin Cash (BCH), heightening speculation around the cumulative effect of the BTC and BCH release on the cryptocurrency market.