Mt. Gox Starts Disbursing Bitcoin and Bitcoin Cash to Creditors, BTC Price Drops to $54.5K

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.

Bankrupt cryptocurrency exchange Mt. Gox has begun repaying its creditors in Bitcoin and Bitcoin Cash, as per an announcement on July 5, 2024. This marks a significant development in the exchange’s protracted rehabilitation process.

Mt. Gox filed for bankruptcy in 2014 after a massive security breach that led to the loss of 850,000 Bitcoins. The exchange’s creditors have been eagerly awaiting the disbursement of funds, which has now commenced.

“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.

However, the statement also noted that further disbursements are contingent on several conditions being met. These include the validation of registered accounts by creditors and the finalization of agreements with the relevant cryptocurrency exchanges.

Additionally, the Trustee emphasized the importance of ensuring secure and verified transactions before proceeding with more repayments. It also urged patience among the eligible creditors who are yet to receive their disbursements.

In related news, cryptocurrency analytics firm Arkham reported that Mt. Gox had moved 47,228 Bitcoins, valued at approximately $2.71 billion at the time, from cold storage to a new wallet. Despite this substantial transfer, over 147,687 Bitcoins, estimated to be worth $7.69 billion, still remain in the Mt. Gox reserves.

Following the news of the repayments, Bitcoin’s market price experienced a sharp decline, dropping to $54,500. This marks the lowest price point for Bitcoin in the past four months. Moreover, Bitcoin Cash’s price fell below $290, indicating a decrease of over 18% in the last 24 hours.

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