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Ohidul Islam
Ohidul Islam

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Mt. Gox to Distribute Repayments in Bitcoin and Bitcoin Cash in July

Mt. Gox, the defunct cryptocurrency exchange that suffered a major hack in 2014, is set to begin distributing repayments to creditors in Bitcoin (BTC) and Bitcoin Cash (BCH) starting in July 2024. The rehabilitation trustee, Nobuaki Kobayashi, announced that the repayments will commence in the order of cryptocurrency exchanges with which the required information has been confirmed.

The repayments will total approximately 142,000 BTC, 143,000 BCH, and ¥69 billion (around $432 million) to be distributed among roughly 127,000 creditors. This marks a significant milestone in the long-awaited recovery of funds for those affected by the exchange's collapse nearly a decade ago.

In May 2024, Mt. Gox moved over 140,000 BTC, worth around $9 billion, from cold wallets to an unknown address in 13 transactions, the first on-chain wallet movements in five years. This transaction was likely a preparation for the upcoming repayments.

The repayments are expected to add selling pressure to both the Bitcoin and Bitcoin Cash markets, as early investors who lost funds may be inclined to sell at least a portion of their holdings. However, for many affected users, the July start date offers long-awaited hope of recouping their stolen savings.

Mt. Gox was once the world's largest Bitcoin exchange, handling over 70% of all Bitcoin transactions in its early years. In early 2014, hackers attacked the exchange, resulting in the loss of an estimated 740,000 BTC, worth approximately $15 billion at current prices. The hack was the biggest of the many attacks on the exchange between 2010 and 2013.

Following the news of the upcoming repayments, Bitcoin's price dropped from over $62,300 to under $62,100. However, the long-term impact on the market remains to be seen.

The repayments represent a significant step in resolving the Mt. Gox saga, which has been ongoing for over a decade. The collapse of Mt. Gox in 2014 had a significant impact on the cryptocurrency market, with Bitcoin's price falling to a local low of $420 shortly after the exchange went offline.

Despite the progress, the repayment process has faced numerous delays, and the current deadline of October 2024 could face further postponements. Nonetheless, the July start date marks a positive development for those affected by the Mt. Gox hack and a step towards closure for a significant chapter in Bitcoin's history.

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