Bitcoin

Bitcoin Cash

The trustee of the failed Japanese cryptocurrency exchange Mt. Gox is preparing to initiate repayments of bitcoin (BTC) and bitcoin cash (BCH), prompting fears of a market sell-off among traders and investors.<h2 id="header-0">Confirming repayment details</h2>The crypto community on the /mtgoxsolvency subreddit <a href="https://www.reddit.com/r/mtgoxinsolvency/comments/19ck51n/important_mtgox_confirmation_of_account_ownership/" rel="noopener noreferrer nofollow">disclosed</a> that the Tokyo-based bitcoin exchange has initiated the process of verifying creditors’ addresses for forthcoming repayments. Emails have been sent to creditors, confirming that their repayment details have been validated with relevant cryptocurrency exchanges.The communication from Mt. Gox appears to be staggered, with users on different platforms receiving emails at varying times. Some Bitstamp users reported receipt of the email, while several Kraken customers mentioned that they were still awaiting the confirmation.Mt. Gox, cautioning creditors, clarified that users with disabled or frozen accounts would not be able to receive repayments using the provided addresses. Additionally, the emails specifically pertain to payments in bitcoin and bitcoin cash.This recent communication follows Mt. Gox’s <a href="https://coinnesslive.page.link/qXGDwjeaavS166es9" rel="noopener noreferrer nofollow">announcement</a> in November, where it committed to returning approximately 142,000 bitcoin, 143,000 bitcoin cash and 69 billion Japanese yen, valued at over $5.67 billion at the announcement date and approximately $6.46 billion at the present moment.During the November announcement, Mt. Gox assured creditors that repayments would commence in the following months and weeks. Creditors with payment methods deemed “effective at this time” were earmarked to receive their assets first.Towards the end of December, some creditors <a href="https://coinnesslive.page.link/jxP12ohWsoiJyCHd7" rel="noopener noreferrer nofollow">reported</a> the addition of yen-denominated balances to their PayPal accounts by Mt. Gox, signaling progress in the repayment process.<h2 id="header-1">Market fears</h2>The fear among market participants of a distribution of bitcoin from the Mt. Gox estate has cast a shadow over the sector over the course of a number of years. With this latest development, it appears that the estate is finally on the cusp of executing on that distribution.If distribution is achieved in the short term, it will come at a time when bitcoin has experienced a major unit price pullback already. Since the approval of spot bitcoin exchange-traded funds (ETFs) in the United States earlier this month, it appears that another bankrupt crypto exchange, FTX, has <a href="https://www.coindesk.com/business/2024/01/22/ftx-sold-about-1b-of-grayscales-bitcoin-etf-explaining-much-of-outflow-sources/" rel="noopener noreferrer nofollow">sold</a> $1 billion worth of Grayscale Bitcoin ETF shares into the market. That move is believed to have been responsible for a dramatic drop in bitcoin’s unit price.In tandem with that event, some commentators believe that a pullback at this point is healthy for the market. That’s the view of Charles Edwards, founder of Capriole Investments. Taking to social media, Edwards <a href="https://x.com/caprioleio/status/1749569313038844361?s&#61;20" rel="noopener noreferrer nofollow">wrote</a>:”We’re still not here yet. This pullback is very overdue and lower is healthier.”At the time of writing, bitcoin has a unit price of $39,884, down from a high earlier this month of $48,494.Confirmation emails have been reported by several Reddit users, with Bitstamp confirming for most, and a few Kraken users also acknowledging receipt. Nevertheless, a significant number of Kraken users mentioned they are yet to receive the confirmation email.Mt. Gox officially closed its doors in February 2014, almost a decade ago, after succumbing to an exploit in 2011.

Mt. Gox edging closer to BTC payouts sparks market fears

Table of Contents

CoinNess Global

Other articles published on Jan 24, 2024

Video game Doom from 1993 game goes live on Dogecoin blockchain

$50K Break Could Propel Bitcoin to ATH; Growing Enthusiasm for Quant and InQubeta

Shiba Inu Faces Uphill Battle Despite Recent Gains

Is It Time for A True Blockchain OS?

Alchemy Pay and BakerySwap Partner to Simplify Crypto Purchases with New On-Ramp Service

Flipside reports cryptocurrency users boom, defi over NFT focus in 2023

Join our free newsletter for daily crypto updates!