Nine years after the infamous collapse of the Mt. Gox Bitcoin exchange, creditors are finally getting some relief. According to recent reports, repayments will begin on March 10, unlocking 137,890 BTC, which is worth over $3 billion at current prices. However, this news has also raised concerns about the potential impact on the Bitcoin market.
What is the Mt. Gox Scandal?
The Mt. Gox scandal refers to the collapse of one of the largest Bitcoin exchanges in the world, which resulted in the loss of approximately 850,000 Bitcoins belonging to its customers. Mt. Gox, headquartered in Tokyo, was responsible for 80% of global Bitcoin trading volume in 2013. In February 2014, the exchange suddenly ceased operations, citing a hack that resulted in the theft of a large amount of Bitcoins. However, it was later discovered that the exchange had been operating with significant insolvency. You can compare it to the story of FTX.
Analysis of recouped funds of Mt. Gox.
The deadline for selecting a repayment option is fast approaching, with March 10 being the cut-off date, and payments are expected to commence in September of this year. Prices of Bitcoin in the Mt. Gox era back in February 2014, was approximately $800. The current price of BTC is now around $22,408, making the potential release of 137,890 BTC ($3B) from the liquidation process a cause for concern among some in the market. Follow the repayments here.
However, many early adopters of bitcoin remain crypto believers, and it is unlikely that most of the recouped funds will not be sold.
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