Mt. Gox, the infamous defunct Japanese cryptocurrency exchange, has announced it will begin distributing recovered Bitcoin (BTC) and Bitcoin Cash (BCH) to creditors starting in July 2024. This marks a significant development in the ongoing Mt. Gox rehabilitation plan, which began after the exchange’s collapse in 2014 due to a massive hack.
According to court documents and creditor reports, Mt. Gox will distribute a total of:
- 142,000 BTC: This amount, currently valued at approximately $8.8 billion (based on today’s price of $62,000 per BTC), represents a portion of the Bitcoin stolen during the 2014 hack.
- 143,000 BCH: At the current price of around $650 per BCH, this translates to roughly $400 million.
The exact distribution schedule remains undisclosed, but creditors can expect to receive their share proportionally based on their verified claims.
The notice indicates that the repayments will be executed through cryptocurrency exchanges with which the Rehabilitation Trustee has completed the necessary exchange and confirmation procedures.
Potential Market Impact
The upcoming Mt. Gox distribution could have a mixed impact on the cryptocurrency market. The influx of a large amount of Bitcoin Cash (BCH) could potentially increase supply and put downward pressure on its price. However, this might be offset by increased demand from creditors looking to sell or trade their BCH.
For Bitcoin (BTC), the impact is less clear. The distribution amount represents a relatively small portion of the total circulating supply, and its effect on price is likely to be muted. However, the overall sentiment surrounding Mt. Gox’s return could influence market sentiment towards Bitcoin in the short term.
As the news of the upcoming repayments circulates, Bitcoin is currently trading at $62,000. However, the leading cryptocurrency has experienced a dip of 2.7% in the past 24 hours and a decline of 5.3% over the past week.
