Bitcoin (BTC) Price Slumps to a Five-Month Low of Under $55,000 After Defunct Exchange Mt. Gox Confirms Repayment to Creditors

Mt. Gox begins repayment On July 5, Mt. Gox’s Rehabilitation Trustee announced it has started repaying creditors through designated crypto exchanges according to the rehabilitation plan.

After years of waiting, Mt. Gox creditors are finally set to begin receiving their Bitcoin (BTC) from the defunct exchange’s estate.

On July 5, Mt. Gox’s Rehabilitation Trustee announced that it has started repaying creditors through designated crypto exchanges in accordance with the exchange’s rehabilitation plan.

Eligible creditors will be able to receive their repayments promptly if they have confirmed the validity of their registered accounts, accepted the intention to subscribe to an agreement by designated crypto exchanges, and completed discussions with the trustee.

This confirmation comes after the failed exchange moved a significant amount of Bitcoin in several transactions on Tuesday. According to data from Arkham Intelligence, Mt. Gox moved 47,228.7 BTC, valued at $2.71 billion at the time, to a new wallet. The assets were then transferred in several transactions, with 1,545 BTC, worth $85 million, being sent to a wallet connected to the Bitbank exchange.

Mt. Gox creditors have been waiting for their funds since the exchange halted withdrawals in 2013 and filed for bankruptcy the following year after losing 850,000 BTC—now valued at over $57 billion—in a hack. Mt. Gox began its creditor rehabilitation process in 2018, aiming to compensate creditors for their lost assets.

Meanwhile, members of the crypto community have welcomed this development, which marks the end of a 10-year wait for Mt. Gox creditors to finally receive their digital assets.

Bitcoin’s price dropped more than 7.2% to $54,209 following the news of Mt. Gox’s repayment to creditors. This marks the first time the asset has dropped below the $55,000 level since February 2024, according to data from CryptoSlate.

The decline triggered one of the largest liquidation events the industry has seen this year, with crypto traders speculating on the price of digital assets on the market losing more than $675 million in the past 24 hours, according to Coinglass.

Long traders speculating on a price increase lost approximately $578 million, while short traders have lost $98 million.

Bitcoin traders suffered the highest losses, with over $225 million in liquidations in the past day. Ethereum traders saw liquidations totaling approximately $167 million. Notably, Bitcoin Cash, another digital asset involved in the Mt. Gox repayment, also saw about $3.8 million in liquidations.

Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.

Also known as "Akiba," Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.

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