- August 29, 2022
Bitcoin: Mt.Gox Creditor Refutes Fake News to 140,000 BTC
A creditor of the Mt.Gox commented on the reports according to which around 140,000 Bitcoin could flood the market in August. However, the payment of these BTC, which will be returned to creditors after the hack and the bankruptcy of the exchange, will actually only take place later in tranches.
Erick Wall wrote a detailed Twitter thread about the current Mt.Gox Developments. Previously, several messages circulated on the net, waiting before the sale of the 140,000 Bitcoin. Supposedly, the complete payout should take place at the end of August 2022 at once. Therefore, there were fears that the creditors would immediately sell the Bitcoin and flood the market.
Eric Wall tweeted on August 28 that the payout will be made in several tranches or gradually. He made it clear that Mt. Gox will not pay out any coins “this week, next week or the week after next”.
Furthermore, according to Wall, some creditors have already decided to sell their claims to Fortress. In addition, there is still no official confirmation of when the repayments from Mt.Gox will follow. The creditors also did not yet have the opportunity to specify the wallet addresses to which they want to receive the digital assets.
However, there will soon be an information note in which creditors can alternatively provide their bank details in order to initiate repayment.
Wall was annoyed by the misinformation that spread on social media. He called on the crypto community to block those Twitter accounts that claim that the withdrawals will take place soon. Other Twitter users also commented on the false information and reiterated that it was a process that would take months.
Danny Devan, a crypto influencer, wrote that the repayment process is just beginning. In his opinion, it will no ”wild sales”, as the payouts take place over months. Devan therefore doubts that a large amount of Bitcoin will suddenly appear on the market. However, he still expects a long-lasting bear market.
Document Provides Clarity on Bitcoin Withdrawals
The official document on the repayment procedure sets out how the settlement will be carried out. Creditors can opt for early repayment in the form of a lump sum. Furthermore, creditors should register as early as possible in a system of Mt.Gox register. The release of the assets is stated in the court document:
“After discussions with the court and in accordance with the recovery plan, the recovery trustee plans to set the deadline for the assignment, etc. The restriction period begins approximately at the end of August this year, until all or part of the repayments made as initial repayments are completed as safe repayments.”
The repayment plan was also finally approved – to the relief of many creditors – in November 2021. The return of the assets marks the end of one of the most controversial stories in crypto history. The collapse of Mt.Gox has been compared to the collapse of the Terra ecosystem and was already a warning for the crypto space at that time: Not Your Keys, Not Your Coins.
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