Mt. Gox Creditor Repayments Begin, Bitcoin Price Plummets 6.87%

Mt. Gox, the infamous Bitcoin exchange that collapsed in 2014, has begun the process of repaying its creditors. This move has coincided with a sharp decline in Bitcoin prices, reflecting the market's response to the long-awaited resolution of one of the industry's most notable bankruptcies.

bankrupt cryptocurrency exchange Mt. Gox has finally begun repaying its creditors in BTC and BCH. This move, which was highly anticipated by the crypto community, has coincided with a sharp decline in the price of Bitcoin.

According to a tweet by Autism Capital on July 5, this development has had a significant impact on the market, causing a total liquidation of $576 million within the last 24 hours. Of this amount, a substantial $499 million was realized from the liquidation of long positions.

Meanwhile, the complete creditor repayment process is still subject to several conditions. These include the confirmation of registered accounts and the completion of discussions with designated cryptocurrency exchanges.

Upon receiving approval from the Tokyo District Court in 2018,小林信明 (Nobuaki Kobayashi) was appointed as the rehabilitation trustee for Mt. Gox. This appointment marked the beginning of a lengthy legal process to determine the fate of creditors and stranded crypto assets.

After years of legal proceedings and delays, the creditors of Mt. Gox were finally given the option to choose between accepting a one-time lump sum payment in fiat currency or crypto assets, or continuing to hold their claims in the hopes of receiving a larger payout in the future.

The vast majority of creditors, around 99%, opted to receive their crypto assets directly. This decision was largely driven by the significant appreciation in the price of Bitcoin and other cryptocurrencies since the exchange's collapse.

As a result, the trustee proceeded to distribute the crypto assets to the creditors in several tranches. The first tranche of creditor repayments was carried out on July 5, 2024, with subsequent tranches being distributed at a later date.

The trustee also announced that the total amount of crypto assets available for distribution to creditors was around 141,686 BTC, 23,686 BCH, and 697,183 XRP. These assets were valued at approximately $9.18 billion at the time of the announcement.

However, it's important to note that the final distribution amounts may vary depending on the exchange rates and the timing of the payouts.

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