Brief news
Mt. Gox, a Tokyo-based bitcoin exchange, is set to repay nearly $9 billion worth of tokens to thousands of users after a major hack in 2014. The payout comes after a lengthy bankruptcy process that has faced numerous delays and legal disputes. Distributions to the firm’s approximately 20,000 creditors are set to commence in early July, using a combination of bitcoin and bitcoin cash. This development has left investors concerned, as the price of bitcoin experienced a significant drop to $59,000 last week. The recent windfall for Mt. Gox users is expected to result in significant bitcoin sales as investors aim to secure their profits. James Butterfill, head of research at CoinShares, has expressed concerns about the Trust’s upcoming sales in July.
Illustrated news
An old bitcoin exchange, which suffered a major hack and subsequently shut down a decade ago, is now planning to reimburse its users with a significant amount of the cryptocurrency. This development has left investors feeling concerned.
Soon, the Tokyo-based bitcoin exchange Mt. Gox will initiate the repayment of nearly $9 billion worth of tokens to thousands of users. In 2014, the platform faced a major setback due to a series of thefts that resulted in the loss of a significant amount of bitcoin, estimated to be worth billions of dollars at today’s prices.
The payout comes after a lengthy bankruptcy process that has experienced numerous delays and legal disputes.
According to the court-appointed trustee, distributions to the firm’s approximately 20,000 creditors are set to commence in early July. Payments will be made using a combination of bitcoin and bitcoin cash, a derivative of the original cryptocurrency.
Although this is positive for the victims of the hack who have patiently awaited compensation, the price of bitcoin experienced a significant drop to $59,000 last week, marking one of the crypto market’s most substantial weekly declines this year.
CNBC interviewed several analysts to gather their insights on the upcoming return of approximately 141,000 bitcoin to Mt. Gox victims. This amount represents around 0.7% of the total 19.7 million bitcoins in circulation.
Bitcoin may face increasing pressure in the near future.
Mt. Gox, formerly known as “Magic: The Gathering Online Exchange,” used to be the leading spot bitcoin exchange worldwide. It boasted about managing approximately 80% of all global dollar trades for bitcoin.
Back in February 2014, the value of bitcoin was approximately $600.
Currently, the world’s largest cryptocurrency is being traded at approximately $61,000 per coin. Users who choose to be reimbursed in the cryptocurrency itself, rather than the cash equivalent, have witnessed a remarkable surge in the value of their coins, exceeding 10,000% over the past decade.
John Glover, an expert in finance and investments, informed CNBC that the recent windfall for Mt. Gox users is expected to result in significant bitcoin sales as investors aim to secure their profits.
“Many will undoubtedly reap the benefits and appreciate the unexpected windfall of having their assets tied up in the Mt. Gox bankruptcy,” stated Glover, formerly a managing director at Barclays. “Some individuals will undoubtedly opt to accept the funds and depart,” Glover remarked.
According to James Butterfill, head of research at CoinShares, the impending release of nearly $9 billion worth of bitcoin has been a cause for concern among those who hold optimistic views on the cryptocurrency.
As a result, the market is extremely responsive to any relevant news. According to Butterfill, investors have expressed concerns about the Trust’s upcoming sales in July.
Source : CNBC News
