The Mt. Gox repayment process has finally kicked off, with the bankruptcy estate transferring 47,282 bitcoins, out of the 140,000 pledged to satisfy creditors. This marks the beginning of the repayment process, and creditors can expect to see the assets in their wallets in the coming days, with the worst-case scenario being a wait of 60-90 days.
Last month, Mt. Gox confirmed the repayment process through a press release, with trustee Nobuaki Kobayashi stating that repayments would start from July 2024. The exchange has taken measures to ensure a safe and reliable repayment process, including technical solutions for secure transfers, compliance with financial regulations across different countries, and discussions with cryptocurrency exchanges regarding repayment arrangements.
To facilitate the repayment process, Mt. Gox will be transferring funds to several exchanges such as Bitbank, Bitstamp, Kraken, BitGo, and SBI VC Trade. These exchanges will handle individual transfers to creditors who have filed for repayment. The timeline for receiving funds will vary depending on the specific exchange’s policies, with some sending funds sooner and others experiencing delays.
The announcement of Mt. Gox fulfilling its debts triggered a selling frenzy among bitcoin holders, causing the cryptocurrency’s value to drop. This selling pressure resulted in bitcoin struggling to make significant gains throughout the previous month. With July now underway, bitcoin’s price started to decline from the second day of the month in anticipation of the repayments.
On July 5, bitcoin plummeted below $54,000, a price level not seen in many months. As Mt. Gox-related assets are distributed to creditors, the market may experience further significant declines. Creditors are expected to sell off a large portion of their repayments as soon as they receive them, leading to a considerable increase in selling pressure.
Overall, the commencement of the Mt. Gox repayment process is a significant development for creditors who have been waiting for years to recover their lost investments. As the repayments continue to be distributed, the cryptocurrency market may witness increased volatility and price fluctuations. It remains to be seen how the market will react to the influx of funds from the Mt. Gox estate and whether bitcoin’s price will stabilize in the coming weeks.
