Largest creditor to bankrupt Mt. Gox Exchange to Hold on to Returned Bitcoin – Huge Selling Pressure Averted?
As the bankruptcy proceedings of Mt. Gox continues, new developments have emerged regarding the Mt Gox Investment Fund, the exchange’s largest creditor. According to reports, the fund has no intention of selling the tokens it will receive later this year.
A person familiar with the fund’s activities who asked not to be identified told Bloomberg that the Mt Gox Investment Fund’s strategy is to hold the digital assets that are scheduled to be returned in October.
Instead of waiting for the completion of all the trials surrounding Mt. Gox’s collapse, the entity chose to receive an early payout. As part of the scheme, Mt. Gox Investment Fund was set to receive 90% of what can be raised, with a ratio of roughly 70% Bitcoin (BTC) and 30% cash, according to an anonymous source.
The deadline for the Japanese platform’s creditors to register the payment method under which they wish to receive claims has passed April 6.
Japanese lawyer Nobuaki Kobayashi, who serves as Mt. Gox trustee, stated in a letter released earlier this week that “[r]rehabilitation creditors who have not completed the selection and registration by the deadline will not be able to receive any of the repayments below.” The accompanying list of repayment methods includes the following:
- Early repayment of lump sum
- Reimbursement for part of cryptocurrency rehabilitation claims in cryptocurrency
- Refund by bank transfer
- Repayment by remittance through a money transfer service provider
“Please note that rehabilitation creditors who have already completed the selection and registration do not need to complete the selection and registration again. Also note that these creditors may change their selection and registration until the deadline,” the letter states.
Since the Japanese trustee has as much as BTC 141,686 under its control, with a current value of around $3.06 billion, many industry observers have feared that the release of Bitcoin from Mt. Gox trove could trigger a big sales push in the crypto market. However, the fund’s reported decision may mean that this scenario will be averted.
The Tokyo-based Mt. Gox was once the largest crypto exchange in the world, but it filed for bankruptcy in 2014 after about 850,000 BTC went missing. The exchange’s creditors have until 6 April to make a decision on whether they should choose the October payment, or wait for a longer time to collect a higher proportion of their claims.
