Mt. Gox Begins Long-Awaited Bitcoin Payouts: What It Means For Crypto Market

Bitcoin prices recently saw a near 6% dip as Mt. Gox began issuing long-overdue payments to its creditors, marking a crucial moment in resolving one of the most infamous events in cryptocurrency history.

Mt. Gox, once the largest cryptocurrency exchange globally, filed for bankruptcy in 2014 following a series of hacks that led to the loss of around 950,000 Bitcoins. This catastrophic event, attributed to a flaw in Bitcoin’s framework, left many users with incomplete transactions and considerable financial losses. At the time of the bankruptcy, Bitcoin was valued at approximately $600 per coin, starkly contrasting its current price exceeding $57,000.

Initial Payments Begin

The trustee overseeing the bankruptcy announced that payments in Bitcoin (CRYPTO: BTC) and Bitcoin Cash (CRYPTO: BCH) have begun for some creditors. This initial disbursement requires creditors to complete account verification and subscribe to one of the designated digital asset exchanges approved for the repayments. Further payments are expected once these preliminary requirements are met.

"We ask eligible rehabilitation creditors to wait for a while," the statement from the trustee urged.

Moving Funds and Market Reactions

In preparation for these payments, billions of dollars in Bitcoin were transferred from Mt. Gox's wallets. Over 47,000 Bitcoins, valued at $2.7 billion, were moved from an offline wallet. Japanese exchange Bitbank received a portion of these funds, facilitating repayments. Additionally, $63.6 million worth of Bitcoin was sent to another unidentified recipient, believed to be another exchange involved in the repayment process.

Arkham Intelligence reported that Mt. Gox wallets still hold 138,985 Bitcoins, worth approximately $7.5 billion, indicating that substantial funds are still pending disbursement.

Future of Digital Assets Event

The ongoing repayments from Mt. Gox have generated great interest and speculation in the cryptocurrency community. This topic, along with other critical issues related to the future of digital assets, will be discussed at Benzinga’s Future of Digital Assets event on November 19 in New York City. The event will bring together digital asset companies and institutional investors for a day of extensive networking and in-depth discussions.

As the market reacts to these developments, the Benzinga event will offer attendees a comprehensive understanding of the digital asset landscape, providing crucial context for investors and industry leaders.

Read Next:

• How Low Will Bitcoin Go If Germany Sells All Its BTC?

Image: Shutterstock