Bitstamp, one of the exchanges selected by Mt. Gox’s bankruptcy estate to repay its creditors, has officially begun the reimbursement process. This comes after test transactions were conducted between Mt. Gox wallets and Bitstamp, resulting in the transfer of funds.
The repayments from Bitstamp will include bitcoin (BTC), Bitcoin Cash (BCH), and Ether (ETH) for creditors assigned to the exchange. It is anticipated that most creditors will receive their assets within a week, once the necessary security measures are put in place to guarantee safe transfers.
In addition to Bitstamp, other virtual asset service providers (VASPs) involved in processing refunds for Mt. Gox creditors include Kraken, Bitbank, BitGo, and SBI VC Trade. Kraken has already completed its part in returning funds to creditors, while the rest are yet to commence.
Initially, Mt. Gox’s trustee had $9.6 billion to work with for repayments, with around 127,000 creditors eligible to make claims. However, the amount available for redistribution has now decreased to $6 billion, consisting of 90,000 BTC and significant quantities of BCH.
After years of waiting, creditors who saw their funds locked due to Mt. Gox’s bankruptcy filing as a result of hacking incidents lasting two years are finally receiving their reimbursements. This development must be a relief for them, especially considering the substantial increase in BTC prices over the past decade.
While creditors assigned to Bitstamp can expect to receive their funds soon, those in the UK may experience delays of a few months before receiving their reimbursements. Bitstamp will communicate with UK creditors regarding the timeline for their payments.
Despite the anticipation of significant selling pressure on the market due to these repayments, BTC prices did not fluctuate significantly following the reimbursements processed by Kraken. Analysts now predict that the market will remain relatively stable with the reimbursements facilitated by Bitstamp, as creditors have not rushed to sell off their assets as initially feared.