The now-defunct cryptocurrency exchange Mt. gox The deadline for entering repayment information has finally passed, thus opening the door for repayments to its creditors. The Tokyo-based crypto firm filed for bankruptcy nearly a decade ago in February 2014, becoming one of the first crypto exchanges to go bankrupt.
Mt. Gox Begins Paying Back
Over the last six months, more than 10,000 crypto creditors from around the world cryptocurrency They had to choose whether they wanted to be paid in currency or fiat, and which cryptocurrency exchange, address, bank account, and even PayPal account to be paid. However, according to the Mt Gox Trustee, refunds can now be made through October 31st, with the deadline ending April 6th.
In a letter dated April 7, the trustee stated that he will coordinate with a number of financial institutions, such as crypto exchanges and digital asset protectors, to prepare for repayments. The procedure will involve transferring payments to such platforms and then distributing them to the appropriate creditors.
Referring to the complexity and involvement of multiple organizations in the overall process, the trustee said:
In light of this, it is expected that it will take some time for the refund to begin. Also, please note that the above deadline may be extended with the permission of the Tokyo District Court, taking into account various circumstances.
Is Bitcoin Price in Trouble?
Although the exchange reported that it lost 850,000 Bitcoins in 2014, the firm recovered approximately 142,000 BTC, 143,000 Bitcoin Cash (BCH), and 69 billion Japanese Yen ($510 million), which is about 20% of the total hack. Payments, fiat currency and cryptocurrencies, especially bitcoin and Bitcoin Cash. The first 200,000 yen ($1520) of each creditor’s receivable will be paid in Yen. However, if the demand exceeds the initial amount and the payee prefers to be paid in both crypto and cash, the user will receive a payment in 71% crypto and 29% cash.
This has led many to believe that the pressure on Bitcoin will ease as customers choose alternative payment methods such as fiat or BCH over BTC. However, the redemption process could result in a marginal increase in the supply of new Bitcoin, which could inadvertently affect the price of the flagship digital asset. While it’s reasonable to expect some fluctuation in Bitcoin’s price, it’s far less likely for anything truly devastating to happen.
As we reported as Koinfinans.com, Bitcoin price is trading at $ 27,926 at the time of writing the news. This represents a 0.26% gain in the last 24 hours, as opposed to the 0.24% increase recorded in the last seven days.