Ten years after its gigantic collapse sent shockwaves through the cryptocurrency industry, Mt. Gox is finally taking steps to repay its creditors. The once-dominant exchange, which famously lost hundreds of thousands of Bitcoins in a high-profile hack, has initiated the long-awaited repayment process.
The recent transfer of 0.021 BTC to a new wallet could signify the beginning of the long-awaited repayment process. With 90,344 BTC still in reserve, this move has ignited fresh speculation about the future of the repayment plan.
We’re all watching closely. Here’s what you should know.
Small Transfer, Huge Implications
According to Lookonchain, a prominent blockchain analytics platform, Mt. Gox transferred 0.021 BTC, approximately worth $1,390, to a new wallet. Although this amount is minuscule compared to Mt. Gox’s total holdings, it marks the initial step in repaying creditors.
Many in the crypto community view this transaction as a preliminary test run before larger amounts are transferred.
The final phase of Mt. Gox’s repayment plan is about 65% complete, nearly a decade after the exchange declared bankruptcy. Recent data from Arkham Intelligence highlights two significant transactions in the repayment process.
On July 5, around 1,545 BTC, worth approximately $98.9 million, was sent to the Japanese exchange Bitbank, and 1,157.1 BTC ($63.6 million) was transferred to an unknown counterparty. Then, on July 16, roughly 48,641 BTC, valued at about $3.11 billion, was moved to what is believed to be Kraken’s address. Following these transactions, Bitcoin experienced a slight price dip but quickly recovered, with its value rising from $55,900 to over $67,710.
The Road Ahead: Remaining Repayments
Currently, 90,344 BTC, worth around $6.11 billion, remains in Mt. Gox’s wallets, awaiting distribution. Along with Bitcoin Cash from the 2018 hard fork, these remaining funds will be repaid over the coming months.
Mt. Gox trustee Nobuaki Kobayashi recently reported that over 13,000 creditors have been repaid so far, out of a total of 20,658 individual creditors. This indicates that the repayment process has covered approximately 65% of the creditors.
The World is Watching!
As the repayment process progresses, the cryptocurrency world is closely watching Mt. Gox to see how swiftly and effectively it will distribute the remaining funds. This long-awaited resolution could mark a significant moment in the history of cryptocurrency exchanges and their commitment to rectifying past wrongs.
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This is history in the making. Are you excited for the future of crypto?
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