Mt. Gox creditors to receive 90% payment in BTC, details inside
- Bitcoinica and the MtGox Investment Fund’s claims accounted for a fifth of all Mt. Gox’s claims.
- The payout should take place by September 2023, after almost a decade.
Two of Mt. Gox’s largest creditors have settled for receiving most of their bankruptcy recovery in Bitcoin [BTC], a move that comes nearly a decade after its bankruptcy filing. What effect might this latest change have on Bitcoin, and consequently, the entire cryptocurrency market?
How much are 1,10,100 BTCs worth today?
Bitcoinica and MGIF opt for BTC payment
New sources indicated that the bankrupt Bitcoin exchange, Bitcoinica, and MtGox Investment Fund, MGIF, have reached an agreement. 90% of the funds owed to them by Mt. Gox will be paid in Bitcoin.
Their claims collectively accounted for about a fifth of all Mt. Gox claims, at roughly 21% of what they had locked on the platform at the time of the hack in 2014.
Those creditors who opt to wait may have to do so for a more extended time before receiving payment. This is because bankruptcy litigation might add another five to nine years to the process. If a creditor opts to be paid in a lumpsum, they can get their funds in Bitcoin, Bitcoin Cash [BCH], or Japanese yen. They may also insist on being compensated in full with fiat.
To earn the maximum possible portion of their rewards in BTC, Bitcoinica and MGIF have accepted the crypto-payout. Therefore, on 30 September 2023, Bitcoinica and MtGox Investment Funds will recover payments.
Mt. Gox, the saga
In 2010, a programmer named Jed McCaleb established a cryptocurrency exchange known as Mt. Gox. The exchange became the leading Bitcoin exchange, processing as much as 80% of all Bitcoin transactions at its height.
However, in 2014, Mt. Gox suddenly closed business because 850,000 bitcoins, worth about $450 million, had been stolen in a cyberattack. The exchange’s creditors have been engaged in a protracted and convoluted court battle to recoup their funds.
Read Bitcoin’s [BTC] Price Prediction 2023-24
BTC payment option allays fear of dump
Because of the protracted dispute, there have been widespread concerns in the crypto world that a dump is imminent. It was worried that the price of Bitcoin would drop if Mt. Gox suddenly liquidated all of its accounts at once. However, a sizeable amount of BTC would have been sold if Bitcoinica and MGIF had opted for fiat payment.
At the time of writing, the price of Bitcoin was close to $23,800.