Mt. Gox’s Largest Creditors Plan Not To Sell Returned BTC After September Payout
Defunct Japan-based Bitcoin exchange – Mt. Gox will return Bitcoins to its creditors by September 2023. Mt. Gox told the crypto community that it has no plan to sell the massive digital assets it will receive by September this year.
They intend to hold on to his massive digital asset and avoid the poor decision of selling out at the wrong time. Instead of waiting for all litigations it faces to settle, the bankrupt exchange chose to embark on an early payout and scheduled it towards the end of the year.
Creditors are therefore faced with a tough decision. They need to decide within a few days if they would like to benefit from the September payout or wait to enjoy a better offer in the future.
According to a recent announcement, Mt. Gox said that the selection of eligible creditors and a deadline for enrollment was postponed by two months.
Some Creditors Will Not Benefit From The Payout
As stated in the documentation of 2019, the bankruptcy trustee holds a digital asset of over 140K BTC. Using the market value of Bitcoin today as the basis of estimate, this will amount to about $3 billion.
Also in the custody of the bankruptcy trustee is a sum of over 65 billion Yen, which would be around half a billion dollars, and over 140K Bitcoin Cash (BCH), equivalent to more than $16 million. Creditors approved the proposed refund program towards the end of 2021.
Meanwhile, the defunct exchange sold about 40,000 BTC and around 35,000 BCH six years ago. These transactions were initiated and completed within three months. Mt. Gox, in its early days, was handling at least 7 out of every ten daily Bitcoin transactions taking place worldwide.
Unfortunately, they plunged into bankruptcy when Bitcoin was only worth about 700 USD. Mt. Gox eventually stopped all Bitcoin-related transactions in February 2014.
Bitcoin has since then experienced about a 3000 percent increase. 2013 was the best year for Mt. Gox, handling over 70% of all BTC trading globally.
The following year, Mt. Gox filed for bankruptcy, suspended trading, and closed its official website. However, the management of Mt. Gox initiated a process to liquidate its assets in February 2014.
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