By
Chimamanda U. Martha
April 24th, 2024
The repayment plan was given final approval on November 2021. After then, creditors were asked to register on the system as early as possible. Also, they have been given the option to choose an early lump sum repayment.
Mt.Gox was rumored to commence BTC and BCH repayment on August 28. However, the nature of disbursement is said to be a “black swan” for the crypto market as all the 140,000 BTC sent to creditors were rumored to be dumped into the market
In response, Eric Wall, an Mt.Gox creditor has dismissed the rumors in a tweet. According to him, the payment would be in tranches and would be completed over time. Also, he clarified that no asset would be distributed in the next three weeks. As of now, no official date has been confirmed for the commencement of repayment. However, he admitted that some have sold their claims to Fortress. For now, the first step of laying out the repayment plan – allowing creditors to submit their banking details, has not been finalized.
In the tweet, he called on the crypto communities to block accounts of people who spread false information on the repayment. Danny Devan, a crypto influencer, also explained that the payment would have no serious impact on the market as the asset would be handed over months. This means there would not be any “insane mass selling”.
“There’s so much false information floating around Twitter so let’s clear something up. Mt.Gox isn’t releasing ALL 137,000 bitcoin tomorrow. It’s starting the repayment process tomorrow so creditors will begin to receive their Bitcoin. The entire process will take months,” he said.
The repayment plan was given final approval on November 2021. After then, creditors were asked to register on the system as early as possible. Also, they have been given the option to choose an early lump sum repayment.
The 850,000 BTC stolen from Mt.Gox is still recognized as the biggest hack in crypto history. This represented 7% of the total Bitcoin in circulation at that time. The amount was valued at $475 million, and over $18 billion at today’s price. The company then managed to recover 200,000 BTC of the stolen asset. Since then, many crypto exchanges have been shut down for losing huge amounts of digital assets to hackers. Recently, the Polygon network was hit heavily. According to reports, 801,601 MATIC, worth over $2 million as of that time was stolen after hackers took advantage of a vulnerability.