Will a new twist over the busted Mt. Gox lead to the BTC dumping?

Mt. Gox  went bust in 2014 supposedly after falling victim to a yearslong hack and lack of cybersecurity. About 850,000 bitcoins had gone missing. Mt. Gox later found about 200,000 of the digital tokens in storage. Bitcoin was worth less than $500 at the time of the bankruptcy, but it’s worth about $6,600 today.

Thus, the cost of 200, 000 bitcoins that are on MtGox assets since its bankruptcy has now increased 12 times and amounts to approximately $1.2 billion – it’s enough to pay off the thousands of creditors who’d lost their bitcoins.

Now the money is in the assets of the MtGox, but on June 22 the Tokyo District Court, which is considering the bankruptcy case of MtGox, decided to begin the process of civil rehabilitation over busted exchange. It means that  MtGox assets won’t be turned into monetary claims, indicating that creditors could be reimbursed in bitcoins at current prices.

“The courts did the right thing by ordering civil rehabilitation as this restores credibility and confidence in the system. I think the creditors deserves some form of compensation, but whether they get something is quite something else”, - told the Bitnewstoday.com George Han, a global ICO advisor to many companies in the financial, education and medical fields, board advisor to Morpheus Labs.

Mr. Han doesn’t believe that creditors would at once sell the reimbursed bitcoins that may lead to the cryptomarket downfall. “I don’t forsee massive dumping once they get their bitcoins. They may just hold onto it in anticipation of future capital appreciation”, - he told.

Photo: REUTERS/Toru Hanai