Opinion: Mt.Gox’s 142,000 BTC payout may trigger a sell-off

Source: Blockchain Knight

The trustee in charge of the bankruptcy proceedings of Crypto asset exchange Mt.Gox has reportedly taken important steps to facilitate BTC repayments.

Recently, there has been some user feedback on the social media platform Reddit that Mt. Gox's official website has been modified to add a Crypto payment option.

The update has sparked mixed reactions among creditors.

While some remain skeptical, others have speculated that Mt.Gox may begin repayments earlier than expected and complete them by October 31, 2024.

The repayment plan requires the distribution of 142,000 BTC, 143,000 BCH, and 69 billion yen to creditors.

If the repayment plan goes ahead as planned, industry analysts expect significant selling pressure in October as creditors liquidate their assets.

This expectation stems from the long wait of Mt. Gox's creditors, which has lasted nearly 10 years since the exchange collapsed.

It is worth noting that repayments have made particular progress in terms of bank accounts. Reports of the first repayments from Mt. Gox appeared in late December 2023, and some creditors even received double payments.

In 2014, Mt. Gox, once a pioneer in the Crypto industry, was attacked by a massive hacker. This resulted in the loss of 850,000 BTC, which is more than $57 billion at the current BTC price.

Following the hack, Mt. Gox filed for bankruptcy protection in 2018 and initiated rehabilitation proceedings to compensate affected creditors.

However, the process was fraught with delays and uncertainties due to legal disputes and other setbacks, leaving users in limbo over the return of their funds.

Meanwhile, Mt.Gox also began repayment actions after warning creditors about potential fraudulent emails.

The Mt.Gox team said that these fraudulent emails falsely claimed that the repayment deadline would be brought forward to March 29, 2023, and urged recipients to click on malicious links to verify their identities. The original text is as follows:

"This email is a fraudulent email impersonating the MTGOX team. The fraudulent email was not sent by us, and the information in the fraudulent email is completely false. Therefore, please ignore the instructions and requests in the fraudulent email."