Mt Gox Begins Bitcoin Repayments to Creditors, Moves $2.71 Billion in Assets

BySamson Ononeme

Jul 5, 2024
Mt Gox has started repaying creditors in Bitcoin and Bitcoin Cash through designated cryptocurrency exchanges, with repayment timelines varying from 14 to 90 days depending on the exchange.

Key Insights

  • Mt Gox has started repaying creditors in Bitcoin and Bitcoin Cash through designated cryptocurrency exchanges, with repayment timelines varying from 14 to 90 days depending on the exchange.
  • The rehabilitation trustee moved 47,228.7 BTC ($2.71 billion) to initiate the repayment process, including a transfer of 1,545 BTC ($85 million) to a Bitbank hot wallet.
  • The repayment announcement coincided with market volatility, as Bitcoin’s price briefly dropped below $54,000.

TOKYO (MarketsXplora) – Mt Gox, the defunct cryptocurrency exchange, has initiated the process of repaying creditors in bitcoin (BTC) and bitcoin cash (BCH), the rehabilitation trustee announced on Friday.

The repayments are being executed through designated cryptocurrency exchanges, in accordance with the rehabilitation plan. Eligible creditors who meet specific criteria, including account validation and agreement to exchange terms, will receive prompt repayments.

“We ask eligible rehabilitation creditors to wait for a while,” the Mt Gox trustee stated, indicating that the process is ongoing.

The announcement follows a significant movement of assets earlier in the day, when Mt Gox transferred 47,228.7 BTC, valued at approximately $2.71 billion, to a wallet. Subsequently, these assets were distributed in multiple transactions, including a transfer of 1,545 BTC ($85 million) to a hot wallet on the Bitbank exchange, as reported by blockchain analytics firm Arkham.

Repayment timelines varies from 14 to 90 days

The timeline for creditors to receive their BTC or BCH repayments may extend up to three months, varying based on the designated exchange. According to a trustee document, Kraken has a 90-day processing window, Bitstamp up to 60 days, while BitGo will complete transactions within 20 days. SBI VC Trade and Bitbank are set to finalize repayments within 14 days.

“Each Designated Cryptocurrency Exchange, etc. is obligated to add the number of BTC/BCH to the balance of a rehabilitation creditor’s account (or to transfer BTC/BCH to a wallet linked to the account) within a certain number of days after the day the BTC/BCH are transferred from the Rehabilitation Trustee,” the document detailed.

The repayment process has coincided with market volatility, as Bitcoin’s price briefly dipped below $54,000 before recovering to $56,720, representing a 2.43% decline over the past 24 hours. The broader cryptocurrency market experienced significant liquidations, with over $665 million wiped out across centralized exchanges.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

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