Breaking: Mt. Gox to Start Repaying Creditors in Bitcoin and BCH Next Week

Mt Gox $10B Bitcoin Distribution Won't Affect BTC Price: Details

In a significant development of its rehabilitation plan, the defunct crypto exchange Mt. Gox announced that it will commence the repayment to creditors in Bitcoin (BTC) and Bitcoin Cash (BCH) starting next week. This is a crucial step by Mt. Gox in resolving outstanding creditor claims dating back to the exchange’s collapse back in 2014.

Mt. Gox To Take Regulatory Precautions

Starting the next month of July 2024, Mt. Gox will initiate the disbursement process starting with those exchanges that have completed the necessary information exchange and other confirmation procedures.

Furthermore, the Mt. Gox report also emphasizes the adherence to global financial regulations in collaboration with virtual currency exchanges. Furthermore, the coordination with collection agencies will facilitate smooth and reliable payments to credits, noted Mt. Gox.

Although this process will progress in stages, Mt. Gox has requested creditors and other affected parties to remain patient as they will execute the repayments progressively as per the exchange requirements.

Mt. Gox has nearly $10 billion to pay off to its creditors in Bitcoin and Bitcoin Cash. It will be interesting to see how long will it take for all the creditors to receive their funds, after waiting for almost a decade.

Bitcoin Faces Further Selling Pressure

The Bitcoin selling pressure has surged in recent weeks with the BTC price slipping under $63,000 recently. However, the bigger question is whether the creditors will sell their Bitcoin after seeing significant appreciation in their holdings in the past 10 years. Following this news, the BTC price has corrected an additional 2% in the last hours, extending its 24-hour loss to 4.9% falling under $61,500 as of press time.

Also Read: Mt. Gox $10B Bitcoin Distribution Won’t Affect BTC Price

Popular crypto analyst Michael van de Poppe stated that the recent selling pressure on BTC is largely news-driven. Van de Poppe noted that the markets are experiencing a substantial drop, likely fueled by heightened fears and overvaluations in response to the news. He also suggested that the market’s reaction to the news could be more severe than warranted.

 

The post Breaking: Mt. Gox to Start Repaying Creditors in Bitcoin and BCH Next Week appeared first on CoinGape.


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