Bloomberg reports that the defunct cryptocurrency exchange Mt. Gox, which had processed 70% of all Bitcoin transactions worldwide, may be getting close to paying its creditors $9 billion in Bitcoin.
This event represents a significant turning point in one of the most complex and drawn-out stories in bitcoin history.
The biggest Bitcoin exchange in the world, Mt. Gox, was breached in 2011 and went bankrupt in 2014. Significant quantities of Bitcoin were lost or stolen, and the collapse sent shockwaves across the cryptocurrency sector, leaving many investors out of pocket.
Arkham Intelligence estimates that the defunct cryptocurrency exchange is holding around 137,892 Bitcoin, which is worth $9.2 billion. Prior documentation suggested that Mt. Gox also held fiat money and Bitcoin Cash. There has already been a return of some fiat money.
Those who have been impacted can finally glimpse the end of the tunnel after a few years. Updates on claims received by certain creditors of the defunct cryptocurrency exchange Mt. Gox suggest that authorities closing down the firm are moving quickly to return the $9 billion Bitcoin hoard back to the owners.
The updates, in the creditors’ opinion, contained details like the quantity of digital tokens that had to be repaid and, in certain situations, the due dates for payback.
According to information he has received regarding tokens that would be refunded, Blockstream CEO Adam Back told Bloomberg that he is still expecting dates. Blockstream provides blockchain infrastructure. The community has reacted to this new shift with a mixture of relief and cautious hope.
As the lengthy winding-up process progresses, the trustee has announced that creditors should get base, intermediate, and early lump-sum payments by October 31.
Potential impact on BTC price
Concerns have been expressed over the payout’s possible effects on the Bitcoin market. There are many who think that a significant sell-off by creditors might put negative pressure on the price of Bitcoin. Some think the distribution would have little effect since the market would absorb it.
As of this writing, Bitcoin has fallen 0.41% over the previous day to $66,289, after hitting a record high of $73,798 in the middle of March. Bitcoin was only worth a small portion of this amount when Mt. Gox collapsed.
