Mt. Gox, the once-dominant cryptocurrency exchange, has commenced repayments to customers, marking the conclusion of a nearly decade-long wait for some users to reclaim their holdings.
At its peak, Mt. Gox handled more than 70% of global bitcoin transactions before declaring bankruptcy in 2014 following a devastating hack that resulted in the loss of approximately 740,000 bitcoins.
The announcement of repayments by Mt. Gox last month, scheduled to start in July, triggered a downturn in bitcoin and broader cryptocurrency markets. This was exacerbated as the exchange moved 47,228 BTC as part of the repayment process, sparking concerns over a potential market sell-off.
“Mt. Gox moved 47,228 BTC, signaling the start of their repayment process, which has caused some market fear due to the large potential sell-off…However, it’s worth noting that despite these concerns, the long-term impact may be less severe as the market gradually absorbs the selling pressure,” commented Willy Chuang, COO of WOO X, a cryptocurrency exchange.
Earlier in the day, bitcoin plummeted to $54,000, its lowest level in five months, triggering liquidation of over $580 million in bullish positions.
This development marks a pivotal moment for Mt. Gox users seeking closure after years of uncertainty, while the broader cryptocurrency market braces for potential volatility amid the repayment process.
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