Former Mt. Gox crypto users set to get repayments
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Former users of the defunct cryptocurrency exchange, Mt. Gox, will begin getting billions of dollars worth of repayments starting in early July, according to the team in control of what's left of the company.
Why it matters: Mt. Gox's bankruptcy process has lasted for a decade, and its long-awaited resolution now threatens to unleash a massive supply of bitcoin on the market.
- That's likely a key part of the reason the world's oldest digital asset fell 5% over the weekend.
What they're saying: "The repayments will be made from the beginning of July 2024," the Rehabilitation Trustee wrote in an announcement Monday.
- "We have taken time to ensure safe and reliable repayment to creditors."
Flashback: Once upon a time, Mt. Gox, an exchange based in Japan, was the biggest place in the world to trade bitcoin.
- It was hit by several security breaches and shut down in 2014. It was taken into the custody of the nation of Japan, which began a decade-long liquidation.
- Three crucial things happened since then: Trustees found more bitcoin left over than they expected, bitcoin was forked into bitcoin cash (BCH) — which gave the trust an enormous windfall — and bitcoin prices have grown far more than anyone expected over the course of the liquidation.
By the numbers: Arkham Intelligence estimates Mt. Gox has over 141,000 BTC, or over $8 billion worth.
- The company should have an equal number of bitcoin cash (BCH), which currently trades for about $354 (another $50 million or so).
What we're watching: Whether those who get refunds opt to sell or hold. Analysts have said they expect many people recipients will not sell.
What's next: At the end of its note, the trustee said, "Please wait for a while until the repayments are made," to people who have already waited ten years.
