It's a big sigh of relief for the creditors of the former bitcoin exchange platform Mt. Gox! The saga of this fallen exchange is finally taking a major turn. After years of waiting and complex procedures, the platform is finally reimbursing its customers. This news pleases the creditors, but the repercussions on the crypto market are disastrous.
Bankrupt Bitcoin Exchange Finally Pays Off Debts
Founded in 2010 by Jed McCaleb, Mt. Gox quickly established itself as a leading exchange in the crypto industry. The platform handled up to 70% of the world’s bitcoin transactions at its peak. However, in 2014, it went bankrupt after losing 850,000 BTC due to an undetected security breach. This massive loss led to the suspension of all withdrawals and, ultimately, the filing of bankruptcy in February 2014. After years of legal battles, Mt. Gox is finally repaying its creditors.
Funds refunds are made in bitcoin (BTC) and bitcoin cash (BCH) via designated crypto exchanges, in accordance with the rehabilitation plan. In a post on social media platform X, the MtGoxBalanceBot account reveals that the rehabilitation trustee currently holds 94,457 BTC, of which 47,288 BTC have already been transferred for repayments.
To receive their compensation, creditors must confirm the validity of their account and accept the receipt agreement by the designated exchanges. The security and safety of transactions are given priority in this process.
Relief for creditors, chaos for crypto market
Bitcoin exchange Mt. Gox’s refunds are having a significant impact on the crypto market. According to CoinGlass, crypto liquidations have reached a high of $675 million in the last 24 hours, the highest since FTX went down in 2022. This wave of liquidations is largely attributed to Mt. Gox creditors selling their newly refunded BTC.
This situation could cause Bitcoin selling to intensify in the coming days, putting downward pressure on the price of the flagship crypto. Investors are closely monitoring this dynamic as it could influence the stability of the crypto market in the short term.
As Mt. Gox begins paying back its creditors, the crypto market is experiencing a period of increased volatility. Massive bitcoin liquidations could continue to influence the price of this crypto. Investors should remain vigilant and monitor developments closely.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
Click here to join 'Read to Earn' and turn your passion for crypto into rewards!
