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Mt. Gox, a name synonymous with one of the most dramatic episodes in the cryptocurrency world, has started disbursing Bitcoin and Bitcoin Cash to its creditors. This significant move was announced on July 5, 2024, marking a pivotal turn in the long-drawn rehabilitation process of the defunct Bitcoin exchange.
Bitcoin and Bitcoin Cash’s prices have been volatile amidst this development.
Mt. Gox Still Holds Bitcoin Worth $7.69 Billion
The repayment initiative stems from Mt. Gox’s complex bankruptcy proceedings. The firm filed for bankruptcy after a massive security breach in 2014 that resulted in the loss of 850,000 Bitcoins.
“On July 5, 2024, the Rehabilitation Trustee made repayments in Bitcoin and Bitcoin Cash to some of the rehabilitation creditors through a part of the Designated Cryptocurrency Exchanges etc. in accordance with the Rehabilitation Plan,” Mt. Gox announced.
Read more: Top Crypto Bankruptcies: What You Need To Know
Creditors must meet several conditions before further disbursements. These include validating the registered accounts’ authenticity and finalizing agreements with the involved cryptocurrency exchanges.
Furthermore, the Trustee highlighted the necessity of ensuring secure and verified transactions before proceeding with more repayments. It also urged patience among the eligible creditors awaiting their turn.
In a related report earlier today, Arkham, a cryptocurrency analytics firm, noted that Mt. Gox had transferred 47,228 Bitcoins, worth approximately $2.71 billion, from cold storage to a new wallet. Despite this substantial movement, over 147,687 Bitcoins, valued at $7.69 billion, remain in the Mt. Gox reserves.
Following the repayment news, Bitcoin’s market price experienced a sharp decline, plummeting to $54,500. This price point is noted as the lowest in the past four months. Moreover, Bitcoin Cash’s price went below $290, down by over 18% in the past 24 hours.