Mt. Gox, the defunct cryptocurrency exchange, has begun the long-awaited process of repaying creditors affected by the massive 2014 hack. This news follows years of legal battles and complex negotiations.
Early signs of the distribution process emerged when several Mt. Gox creditors reported receiving emails from Kraken, a major cryptocurrency exchange. These emails stated that Kraken had successfully received their allocated Bitcoin (BTC) and Bitcoin Cash (BCH) funds from the Mt. Gox trustee.
Important to note, these initial reports likely represent a small subset of the total repayments. The full distribution process is expected to be gradual, with a court-ordered deadline of October 2024. The exact timeline for individual payouts remains unclear.
The total amount of cryptocurrency involved is significant. Mt. Gox is estimated to hold around 140,000 BTC and a larger amount of BCH, both representing a substantial portion of the circulating supply at the time of the hack.
The full-scale distribution of Mt. Gox’s Bitcoin holdings has been a point of concern for some cryptocurrency analysts, with fears of a potential sell-off impacting the price of Bitcoin. However, the exact impact remains uncertain. Some analysts believe the distribution may be spread out over time, mitigating any significant price swings.
Further details and official announcements from the Mt. Gox trustee are expected in the coming weeks
