Mt.Gox customers have started receiving payments in bitcoins and Bitcoin Cash

What’s new? On July 5, the trustee of the Mt.Gox bitcoin exchange that went bankrupt in 2014, Nobuaki Kobayashi, has announced the start of cryptocurrency payments to clients through third-party exchanges in accordance with the approved plan. Thus, the Kraken platform has 90 days to process the payments, while it may take up to 60 days to receive compensation through Bitstamp. Payouts on BitGo will be displayed within 20 days, while SBI VC Trade and Bitbank will finalize payouts within 14 days.

Trustee statement

What else is known? Previously, customers could self-refer to one of the aforementioned exchanges to receive compensation from Mt.Gox. Kobayashi noted that the exchanges would have to transfer bitcoins and Bitcoin Cash (BCH) to Mt.Gox creditors’ balances or cryptocurrency wallets linked to their accounts.

Payments to some creditors were made immediately. On July 5, for example, Mt.Gox transferred 47 228,7 BTC (about $2,71 billion) in a series of transactions, including 1545 BTC ($85 million) to a Bitbank hot wallet, according to blockchain analytics platform Arkham Intelligence.

Reddit users with Bitbank accounts have already started reporting receiving BTC and BCH into exchange accounts. According to them, the amounts were exactly the same as Mt.Gox’s compensation figures.

Back in September 2023, the trustee reported that creditors would be reimbursed 142 000 bitcoins and 143 000 BCH, as well as 69 billion Japanese yen. Customers began receiving their first fiat payments at the end of 2023. At that time, the exchange mistakenly sent them double payouts and called for a partial refund, threatening legal consequences.

In the ten years since the exchange’s bankruptcy, there have been repeated concerns in the community that compensating creditors would cause the asset’s exchange rate to plummet as a result of selling pressure. During that time, bitcoin’s exchange rate has increased about 70 times.

In contrast, Alex Thorn, an analyst at the crypto investment firm Galaxy Digital, is of the opinion that Mt.Gox’s creditors would prefer to keep the coins rather than sell them immediately after receiving them.

Source: X.com

Amid news of the Mt.Gox payout, the BTC exchange rate broke through the psychologically important $60 000 mark and has fallen by 15% to $55 188 overall since the beginning of July.

Over the past 24 hours, positions worth $645 million were liquidated in the crypto market, of which $537,53 million are long, according to Coinglass data.