Bitcoin: Mt. Gox will release 141,686 BTC and 143,000 BCH
- Creditors expected to receive approximately 141,686 Bitcoin (BTC) and ¥69 billion in Mt. Gox plans to pay off debt.
- Mt. Gox Investment Funds and Bitcoinica, chose to receive the repayment in Bitcoin.
The infamous rehabilitation manager of Mt. Gox cryptocurrency exchange has made headlines with its decision to begin paying back its creditors in Bitcoin as part of its rehabilitation plan. The trustee of the exchange is set to reimburse the creditors by 31 October 2023.
Nobuaki Kobayashi released a letter on April 7, 2023 covering information about the repayment plan. The report emerged claiming that Mt. Gox is set to release an additional 141,686 BTC and 143,000 BCH, leading some to speculate that this could lead to a significant drop in Bitcoin’s price.
The report also added that April 6, 2023 was the deadline by which creditors were expected to submit repayment information. In it, Kobayashi also states that the rehabilitation currently comes with plans for repayment. For example, some of the plans include contacting cryptocurrency exchanges, banks, custodians and money transfer providers, among other things.
The early lump sum is expected to start on 31 October 2023. However, the exact repayment dates for individual redevelopment creditors have not yet been confirmed. The repayment period can be extended if the Tokyo District Court approves it.
My Gox has selected four crypto exchanges and the Luxembourg-based crypto exchange Bitstamp is one of the four. In recent weeks, Bitstamp has published a guide showing creditors what they should do to make a claim.
Will the refund affect the BTC price?
Mt. Gox was once one of the world’s largest Bitcoin exchanges before it filed for bankruptcy in 2014. Since then, creditors have fought for years to get their money back, and a civil rehabilitation plan was finally approved in 2018.
The report suggests that Mt. Gox’s decision to release such a large amount of BTC and BCH could have a significant impact on the market. The market may see a sudden drop in Bitcoin’s price as supply increases, leading to a sell-off by investors.
Creditors are expected to receive 143,000 Bitcoin Cash (BCH) approximately 141,686 Bitcoin (BTC) and 69 billion yen. The creditors could choose whether to receive the repayments in Crypto or Fiat. The first ¥200,000 of each creditor’s claim, which is about $1,520, will be paid in yen. If the claim is higher, creditors can choose to receive either cash or crypto. They can receive 71% in crypto and 29% after they get the first refund.
According to the above repayment plans, the exact amount of Bitcoin to be released to the market is uncertain, but it is clear that the Trustee will not release all Bitcoin at once. The two largest creditors; Mt. Gox Investment Funds and Bitcoinica, chose to receive the repayment in Bitcoin. According to a report from Blomberg, the My. Gox Investment Fund will not sell its BTC.
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Despite these conflicting opinions, one thing is clear: the impact of Mt. Gox’s paybacks on the Bitcoin price remain uncertain. While some predict a significant drop, others believe the market could see a more positive response. Ultimately, only time will tell how Mt. Gox’s actions will affect the value of Bitcoin and the broader cryptocurrency market.
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