Mt.Gox, a cryptocurrency exchange that shut down in 2014 following a massive hack, has released an update on the repayment process under the creditor rehabilitation plan. The updated details show that those who lost money after the breach could start being compensated in August this year.
Mt.Gox updates repayment procedure
The exchange released a statement saying that Nobuaki Kobayashi, a “Rehabilitation Trustee,” would start making the repayments according to the rehabilitation plan approved by the exchange.
The trustee also released a report showing the repayment procedures and his performance in his role as a trustee. Kobayashi was appointed to aid the exchange’s process of compensating the users affected by the 2014 hack.
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The document provided by the trustee also gives the creditors information on the choices they have to receive payments. The options include receiving a lump-sum payment of their funds or receiving part of the funds in cryptocurrencies, specifically Bitcoin or Bitcoin Cash.
The trustee has also provided a Restriction Reference Period that will commence towards the end of August. This period will last until all of the initial repayments or part of them have been finalized.
Fears of Mt.Gox Bitcoin affecting prices
There has been chatter on crypto Twitter about Bitcoin prices being affected once Mt.Gox starts repaying its creditors. The crypto space has been under an intense bear market, with Bitcoin prices struggling to hold the $20,000 support level. Once the Mt.Gox Bitcoin hits the market, it could prompt further decline as these investors are most likely to sell all their coins in the market.
The current sentiments during the bear market differ from those shared during the November bull market when Mt.Gox finalized the rehabilitation deal. At the time, Bitcoin was trading at all-time high prices of around $69,000, and the community argued that dumping these coins in the market would not harm prices.
The CEO of CryptoQuant, Ki Young Ju, created a tool that would allow people to receive an alert when the Mt Gox public blockchain wallet starts to release Bitcoin. This tool could be useful to investors who do not want to be caught unawares by further dips in the space.
Earlier this year, the former CEO at Mt.Gox released a series of non-fungible tokens. The tool was free to all former users of Mt.Gox, with the NFTs expected to give holders access to the analytics details of exchanges and their levels of security.
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