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According to Bloomberg, the collapsed cryptocurrency exchange Mt. Gox, which once handled 70% of all Bitcoin transactions globally, might be inching closer to distributing $9 billion worth of Bitcoin to its creditors.
This development marks a critical turning point in one of the longest and most intricate sagas in the history of cryptocurrency.
Mt. Gox, formerly the world's largest Bitcoin exchange, was hacked in 2011 and declared bankrupt in 2014. The collapse sent shockwaves through the cryptocurrency industry, leaving many investors out of pocket, with significant amounts of Bitcoin lost or stolen.
According to Arkham Intelligence, the bankrupt cryptocurrency exchange holds about 137,892 Bitcoin valued at $9.2 billion. Previous records indicated that Mt. Gox also had Bitcoin Cash and fiat money. Some fiat money has already been returned.
After several years, individuals who have been affected can now see the light at the end of the tunnel. Some creditors of the Mt. Gox cryptocurrency exchange said they had received updates on their claims, indicating that officials winding down the platform are speeding up efforts to repatriate the $9 billion Bitcoin stash.
According to the creditors, the updates included information such as the number of digital tokens that needed to be returned and, in some cases, repayment deadlines.
Adam Back, CEO of blockchain infrastructure company Blockstream, told Bloomberg that he has received updates on tokens that will be returned but is awaiting dates. This recent move has been met with a mix of relief and cautious optimism by the community.
The trustee has stated that creditors should get base, intermediate and early lump-sum payments by Oct. 31 as the extended winding-up procedure unfolds.
Potential impact on BTC price
The impending payoff has raised concerns about its potential impact on the Bitcoin market. Some believe that a massive sell-off by creditors might exert downward pressure on Bitcoin prices. Others believe that the distribution would be absorbed by the market with minimal impact.
At the time of writing, BTC had dropped 0.41% in the previous 24 hours to $66,289, reaching a record high of $73,798 in mid-March. When Mt. Gox fell, Bitcoin was only worth a fraction of this sum.