Mt. Gox creditors can dump 142,000 Bitcoin
- Creditors can unload a total of almost 142,000 bitcoin to an already stressed market.
- The Enforcement Manager will restrict creditors from moving funds for a period of time.
- Over 700,000 BTC were tapped in Mt. The Gox implosion in 2014.
Victims of the implosion of bitcoin exchange Mt. Gox can now choose between different ways to receive bitcoin back: bitcoin itself, cash or Bitcoin Cash.
Users of the now defunct stock exchange lost hundreds of thousands of bitcoin in total eight years ago. Now they can get compensation.
Although the incident caused the loss of over 700,000 BTC in 2014, less than 150,000 coins have reportedly been recovered and will be made available by the trustee for users to cut back on some of their losses.
The option could make 141,686 bitcoin float again, depending on the legitimate users’ choices, and pose a new sales threat to an already affected market.
Mt. Gox creditors were sent a correspondence dated July 6 by attorney Nobuaki Kobayashi, the appointed trustee of Mt. The Gox rehabilitation process, which confirmed that he was “preparing to pay back” to account holders.
In addition to the method of payment, creditors should also choose “whether they want to receive an early lump sum or not,” notes the document. Refund timeline is not set.
“The deadline for election and registration will be set by the rehabilitation trustee with permission from the court,” according to the correspondence.
Given that the price of bitcoin was a fraction of the current market value of around $ 21,000, it has been speculated in society that many creditors could choose to load bitcoin into the cash market – directly or indirectly. This is because, even if details were not shared, the trustee would allegedly liquidate a similar amount of bitcoin to pay out those interested in receiving fiat currency.
However, the document cites that the rehabilitation manager may set a period during which creditors will not be able to move the funds received:
«The rehabilitation trustee may… determine a period during which the transfer, transfer, succession, security or disposition of other forms of rehabilitation claims is prohibited.
After discussions with the court and in accordance with the rehabilitation plan, the rehabilitation manager plans to determine the assignment, etc. Reference period for restriction from approx. end of August this year until all or part of the repayments made as initial repayments have been completed for security reasons. and secure refunds.
If rehabilitation claims are transferred during the Assignment etc. Limitation reference period, the use of the System by both transferors and acquirers will be suspended, and this may result in you not being able to complete the Election and Registration. the amount of the refund may be deposited with the Tokyo Legal Affairs Bureau in accordance with laws and regulations. “
