Bitcoin meets Mt. Gox ‘black swan’ while the trustee prepares to unlock 150K BTC

by · July 7, 2022

Bitcoin (BTC) faces a new sales threat in the near future when users of the closed exchange Mt. Gox is preparing to get BTC back.

In recent correspondence dated July 6, attorney Nobuaki Kobayashi, appointed trustee in Mt. The Gox rehabilitation process, that he “prepared to pay back” to account holders.

Cash, Bitcoin or Bitcoin Cash?

Over eight years after Mt. Gox imploded, it seems that those who lost money are about to receive BTC.

The event has been long overdue, as have concerns about the impact on the market. The price of Bitcoin at the time was a fraction of today’s $ 20,900, commentators have noted, leading to suspicions that recipients could immediately sell large amounts of BTC on the market, and push prices.

In the official correspondence, Kobayashi did not give an exact date for when the repayments would begin.

“The Rehabilitation Trustee is currently preparing to make repayments (‘repayments’) in accordance with the approved rehabilitation plan as confirmation of the ruling of the Tokyo District Court (‘ the Court ‘) was made final and binding on 16 November 2021 (the’ ‘Rehabilitation Plan’) , »It is called.

Debtors now have the choice of receiving outstanding funds as an “Early Lump-Sum Repayment or not”, it continues, in addition to receiving all or part of them in BTC or embattled altcoin Bitcoin Cash (BCH).

“The deadline for the election and registration will be set by the rehabilitation manager with permission from the court,” the correspondence adds.

Mt. Gox trustee balance sheet. Source: Glassnode

The rehabilitation plan was originally approved in 2018 and confirmed in October 2021. Of the initial 850,000 BTC lost by Mt. Gox’s decline, only reported 150,000 BTC has been recovered.

In response, Ki Young Ju, CEO of the chain analysis platform CryptoQuant, advised traders to set price alerts for when payments began.

“It’s still quiet for now,” he said twitretwhile another Twitter user included Mt. Gox tops the list of “black swan” events that could affect BTC.

Repayment of Celsius loans increases BTC

BTC / USD was unaffected by the prospect of payouts on the day.

Related: Celsius has been paying down 143 million in DAI loans since 1 July

Instead, news broke that the crypto-lending platform Celsius had completed its own repayments in the form of a $ 44 million loan to the MakerDAO market at nine-day highs of close to $ 21,000.

As Cointelegraph reported, volatility was already expected to hit Bitcoin, which had consolidated in an increasingly narrow area for several days, data from Cointelegraph Markets Pro and TradingView showed.

BTC / USD 1-hour light chart (bit stamp). Source: TradingView

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