The bankrupt exchange has begun repaying creditors through designated cryptocurrency exchanges according to the repayment plan. Once the world’s largest cryptocurrency exchange, Mt. Gox has been working to repay creditors since its collapse in 2014. The repayment process began on July 5, 2024, involving payments in Bitcoin (BTC) and Bitcoin Cash (BCH). This marks a significant milestone in the long bankruptcy proceedings of the exchange, but with $7 billion worth of Bitcoin remaining in cold wallets awaiting distribution, overall market sentiment remains low, fearing that creditors receiving Bitcoin will sell it en masse in the market, causing Bitcoin prices to fall continuously.
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Mt. Gox begins repaying creditors
Mt. Gox’s future repayment conditions
The first batch of repayments is being made to certain creditors through designated cryptocurrency exchanges according to the repayment plan. An official document circulating (as the official website link has become invalid) outlines the repayment process and conditions.
“On July 5, 2024, the repayment trustee made repayments to some creditors in Bitcoin and Bitcoin Cash through some designated cryptocurrency exchanges according to the repayment plan,” the document states.
For the remaining creditors, repayments will be made “immediately” after meeting certain conditions. These conditions include:
Account verification
: Confirming the validity of creditors’ accounts to ensure payments are made to legitimate entities.
Acceptance of terms
: Creditors must accept the intent of the proxy receipt agreement provided by the designated cryptocurrency exchanges.
Security guarantees
: Ensuring all transactions are conducted securely to prevent potential fraud or misuse of funds.
Completion of procedures
: Finalizing discussions between the repayment trustee and exchanges regarding the repayment process to streamline the process.
Mt. Gox beginning to repay debts is a positive development for its long-suffering creditors, but for the crypto trading market, it may be a painful process.
BCH
Mt.Gox
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