In a significant development in the convoluted history of cryptocurrency, the collapsed Mt. Gox exchange appears to be edging closer to disbursing approximately $9 billion worth of Bitcoin to its creditors, as reported by Bloomberg.
Mt. Gox, once the dominant force handling 70% of global Bitcoin transactions, suffered a catastrophic hack in 2011, culminating in its declaration of bankruptcy in 2014. This event sent shockwaves throughout the cryptocurrency sphere, leaving numerous investors bereft of their assets, with substantial sums of Bitcoin either lost or pilfered.
According to insights from Arkham Intelligence, the defunct exchange still retains possession of roughly 137,892 Bitcoin, valued at an estimated $9.2 billion. Previous disclosures have indicated the presence of Bitcoin Cash and fiat currencies within Mt. Gox’s holdings, with partial reimbursements having already been made in fiat.
After enduring years of uncertainty, affected parties are now witnessing signs of progress. Some creditors have reported receiving notifications regarding their claims, signaling accelerated efforts by the platform’s administrators to repatriate the $9 billion Bitcoin trove.
These updates encompass details such as the quantity of digital assets slated for return and, in certain instances, outlined repayment timelines. Adam Back, CEO of Blockstream, a blockchain infrastructure firm, confirmed receipt of notifications regarding forthcoming token distributions, though concrete dates remain pending. This recent development has elicited a blend of relief and cautious hope within the community.
The trustee overseeing Mt. Gox’s dissolution has articulated intentions to provide creditors with base, intermediate, and preliminary lump-sum payments by October 31, as the protracted winding-up process unfolds.
Impact on BTC Price Prospects
As of the time of reporting, BTC exhibited a marginal decline of 0.41% over the previous 24-hour period, settling at $66,289, following a peak of $73,798 in mid-March. It’s worth noting that Bitcoin’s valuation at the time of Mt. Gox’s collapse paled in comparison to its current valuation.
