The Tokyo-based Bitcoin exchange, Mt. Gox prepares releasing a significant amount of Bitcoin (BTC). on the market, signaling the impending disbursement of payments to affected creditors hack attack in 2011.
Mount Gox will put 142,000 Bitcoin on the market
Reports from Reddit reveal that the Kraken Bitcoin (BTC) and Bitcoin Cash (BCH) API interface has flagged this Mountain Gox is getting ready to release its substantial cryptocurrency and fiat holdings, including 142,000 BTC and 143,000 BCH, and 69 billion yen.
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As of May 13, the interface began reading “payment in preparation,” indicating that the money would soon be distributed to creditors. The date for the expected payout is also stated scheduled for October 31, 2024.
This decision comes after years of legal proceedings and negotiations aimed at it repay creditors who lost money after the Bitcoin stock market crash. Earlier in 2011, Mount Gox was hacked, resulting in the loss of 850,000 BTC, now worth over $51 billion. Shortly after the unfortunate attack, Mount Gox filed for bankruptcy and has since been raising money to compensate creditors.
Reports from some customers have shown that the exchange has started distributing money in fiat money. One specific Reddit user revealed earlier in April that he had received USD payments into an HSBC currency account without fees.
While the long-awaited distribution process is great news for creditors, the release of such a large amount of Bitcoin could have a major impact. significant effect on the current Bitcoin market.
Additionally, discussions on whether creditors would sell or hold their Bitcoin holdings once they receive that their money is in circulation. Nevertheless, the payout process presents a step toward closure and recovery for the victims of the hack and stock exchange bankruptcy.
Will creditors sell or hold?
With the Bitcoin market currently in a vulnerable position after experiencing a series of declines following the April 20 halving, the possibility of a large-scale sale can lead to drastic changes in the market, possibly resulting in a crash.
Commenting on Mount Gox’s 142,000 BTC distribution plans, a Reddit community member said suggested that the exchange’s upcoming refunds could become a catalyst for the next BTC dump in 2024.
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In response, another Reddit user doubt expressed about the likelihood of a widespread sell-off, especially at the start of the bull market. The user guessed that investors have been waiting for that Mount Gox’s payments They are unlikely to quickly sell off their Bitcoin holdings for over a decade.
Instead, he suggested that many creditors, like himself, would be more inclined to HODL their Bitcoin holdings, having gained a deeper understanding of the pioneer cryptocurrency during the decade-long wait.
Featured image from U.Today, chart from Tradingview.com