The defunct cryptocurrency exchange Mt. Gox is preparing
to repay its creditors through the Bitstamp exchange, Cointelegraph reported, citing recent on-chain activities.
The cryptocurrency exchange has reportedly executed test transactions that hint
at imminent large-scale repayments.
Mt. Gox has been dormant since it collapsed a decade
ago, but recent on-chain fund movements indicate that creditor repayments could
be approaching. The first test transactions to Bitstamp cold wallets were
reportedly flagged by blockchain intelligence firm Arkham Intelligence on July
22.
Amid the anticipation, crypto investors are
speculating about the potential downward pressure on Bitcoin’s price. This step
marks a significant milestone for the 127,000 creditors owed more than $9.4
billion worth of Bitcoin.
As of July 17, more than 36% of the Bitcoin owed to
creditors had already been distributed. The address associated with Mt. Gox
currently holds over 90,300 Bitcoin, valued at $6.12 billion. While the exact
timing of the repayments remains unclear, the recent test transactions on
Bitstamp suggest that the final preparations are underway.
In June, the crypto exchange announced plans to start
repaying its users. The rehabilitation trustee mentioned that repayments will
be processed in Bitcoin and Bitcoin Cash starting this month. The repayments will be made through the selected
exchanges, and the order of payment will reportedly depend on the respective
exchange.
According to a note from the exchange, the
rehabilitation trustee will start the repayment process for its customers since
it lost 850,000 Bitcoins. The firm mentioned that it had completed the
exchange and confirmation of the required information with certain
cryptocurrency exchanges.
Expect ongoing updates as this story evolves.
The defunct cryptocurrency exchange Mt. Gox is preparing
to repay its creditors through the Bitstamp exchange, Cointelegraph reported, citing recent on-chain activities.
The cryptocurrency exchange has reportedly executed test transactions that hint
at imminent large-scale repayments.
Mt. Gox has been dormant since it collapsed a decade
ago, but recent on-chain fund movements indicate that creditor repayments could
be approaching. The first test transactions to Bitstamp cold wallets were
reportedly flagged by blockchain intelligence firm Arkham Intelligence on July
22.
Amid the anticipation, crypto investors are
speculating about the potential downward pressure on Bitcoin’s price. This step
marks a significant milestone for the 127,000 creditors owed more than $9.4
billion worth of Bitcoin.
As of July 17, more than 36% of the Bitcoin owed to
creditors had already been distributed. The address associated with Mt. Gox
currently holds over 90,300 Bitcoin, valued at $6.12 billion. While the exact
timing of the repayments remains unclear, the recent test transactions on
Bitstamp suggest that the final preparations are underway.
In June, the crypto exchange announced plans to start
repaying its users. The rehabilitation trustee mentioned that repayments will
be processed in Bitcoin and Bitcoin Cash starting this month. The repayments will be made through the selected
exchanges, and the order of payment will reportedly depend on the respective
exchange.
According to a note from the exchange, the
rehabilitation trustee will start the repayment process for its customers since
it lost 850,000 Bitcoins. The firm mentioned that it had completed the
exchange and confirmation of the required information with certain
cryptocurrency exchanges.
Expect ongoing updates as this story evolves.