In a move long awaited by many, Mt. Gox has announced plans to start distributing assets from the infamous 2014 hack beginning July 2024. This decision follows years of delayed deadlines and legal complications. The repayments will be issued in both Bitcoin (BTC) and Bitcoin Cash (BCH), potentially increasing market supply and exerting downward pressure on prices. The announcement made by Nobuaki Kobayashi, the court-appointed rehabilitation trustee, elaborates on the measures being taken to ensure a smooth reimbursement process. 'The Rehabilitation Trustee has been preparing to make repayments in Bitcoin and Bitcoin Cash under the Rehabilitation Plan,' stated Kobayashi on the Mt. Gox website. 'The repayments will be made from the beginning of July 2024,' he added, noting that strict due diligence and safety protocols would precede the dispersals.
Market Reactions
Experts suggest that the impending repayments could result in significant selling pressure, specifically because early investors are now poised to receive assets that have greatly appreciated in value since their initial investment before 2013. This is likely to drive some recipients to sell, capitalizing on the current high market value.
Crypto Analysts
At its peak, Mt. Gox was the world's leading cryptocurrency exchange, processing over 70% of all Bitcoin transactions. However, in early 2014, a devastating hack resulted in the theft of approximately 740,000 Bitcoin, valued at an estimated $15 billion in today's market. This event marked one of the biggest security breaches in the cryptocurrency domain, severely shaking investor confidence at the time. Following years of turmoil and legal battles, Mt. Gox’s trustees have developed a detailed repayment plan, sanctioned by a Tokyo court with a deadline set for October 2024. As a significant part of this preparation, over 140,000 BTC, worth around $9 billion, was moved from cold wallets to an unidentified address in 13 separate transactions this past May, marking the first wallet activity in five years.
Following the news, Bitcoin’s price experienced a slight but noticeable dip, falling from over $62,300 in early Asian trading hours to under $62,100, as per CoinGecko data.
Author
Samuel Ekundayo
Samuel is a seasoned financial journalist based in Lagos, Nigeria. With over a decade of experience in economic reporting, Samuel has turned his focus to the evolving world of cryptocurrencies and blockchain. He holds a master's degree in Economics and is passionate about democratizing financial information.
