The famous cryptocurrency exchange Mt., which declared bankruptcy in 2014. Gox will begin repaying creditors in July. In the refund process, which has been worked on for years, $9.2 billion worth of Bitcoin held since the stock market crash will be returned.
The Improvement Trustee, responsible for overseeing the refund process, is preparing to issue refunds in Bitcoin and Bitcoin Cash. The Trustees stated that they have devoted significant time to ensuring a safe and reliable refund process, which includes technical solutions for secure refunds, compliance with financial regulations in each country, and discussing refund arrangements with cryptocurrency exchanges.
Mt. started operating in Japan in 2010. Gox was one of the first crypto exchanges and at one time processed approximately 70% of all Bitcoin transactions. The exchange’s collapse a decade ago left creditors and their $9.2 billion worth of Bitcoin in limbo.
More than 140,000 Bitcoins, Mt. It could flood the market any time before Gox’s Oct. 31 deadline for refunds. The exact timing and pace of release of these funds is unclear at this time.
The impending release of such a large amount of Bitcoin has created some concerns in the market, resulting in a decline in the price of Bitcoin. However, Mt. Brian Dixon, CEO of Off The Chain Capital, the crypto hedge fund that purchased Gox receivables, stated that his firm will be “very systematic” about selling the Bitcoin it receives.
Dixon also visited Mt. Gox position accounts for almost a fifth of its fund, he said. “We will start looking at other opportunities where we can buy other crypto assets at a discount because that will help us outperform Bitcoin,” he said.
Brad Howell, managing director of crypto market maker Keyrock UK, said the market could easily absorb the selling pressure. Howell, Mt. Gox’s impact on the market will be heavily influenced by sentiment and not actual market dynamics.
“It’s safe to assume that anyone with holdings in Mt. Gox are early adopters and are more likely to skew towards the Bitcoin fanatic end of the spectrum,” Howell said, referring to Bitcoin enthusiasts. In other words, according to Howell, they could spend their Bitcoins on Mt. Gox will likely HODL or hold onto their crypto tightly.
*This is not investment advice.