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Crypto: Mt. Gox Finally Repays its Creditors After Ten Years of Waiting!

Fri 05 Jul 2024 ▪ 3 min read ▪ by Luc Jose A.
Getting informed ▪ Centralized Exchange (CEX)

It’s a huge sigh of relief for the creditors of the former bitcoin exchange platform Mt. Gox! The saga of this fallen exchange is finally seeing a major turning point. After years of waiting and complex procedures, the platform is finally proceeding with the repayment of its customers. News that delights creditors, but whose repercussions on the crypto market are disastrous.

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The bankrupt bitcoin exchange platform finally repays its debts

Founded in 2010 by Jed McCaleb, Mt. Gox quickly established itself in the crypto industry as a reference exchange. The platform handled up to 70% of global bitcoin transactions at its peak. However, in 2014, it went bankrupt after losing 850,000 BTC due to an undetected security flaw. This massive loss led to the suspension of all withdrawals and, ultimately, the declaration of bankruptcy in February 2014. After years of legal battles, Mt. Gox is finally proceeding with the repayment of its creditors.

Fund restitutions are being made in bitcoin (BTC) and bitcoin cash (BCH) via designated crypto exchanges, in accordance with the rehabilitation plan. In a post on the social network X, the MtGoxBalanceBot account reveals that the rehabilitation trustee currently holds 94,457 BTC, of which 47,288 BTC have already been transferred for repayments.

To receive their compensation, creditors must confirm the validity of their account and accept the reception agreement through designated exchanges. Security and safety of transactions are priorities in this process.

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Relief for creditors, chaos for the crypto market

The repayments made by the bitcoin exchange Mt. Gox have significant repercussions on the crypto market. According to CoinGlass, crypto liquidations reached a peak of $675 million in the past 24 hours, a record since the fall of FTX in 2022. This wave of liquidations is largely attributed to Mt. Gox creditors selling their newly repaid BTC.

This situation could provoke an intensification of bitcoin sales in the coming days, exerting downward pressure on the price of the flagship crypto. Investors are closely monitoring this dynamic as it could influence the stability of the crypto market in the short term.

As Mt. Gox begins to repay its creditors, the crypto market is going through a period of increased volatility. The massive liquidations of bitcoin could continue to influence the price of this crypto. Investors need to stay vigilant and closely monitor developments.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.