The trustee of the Mt. Gox exchange, which declared bankruptcy in 2014, has announced plans to start compensating creditors in Bitcoin, Bitcoin Cash, and cash in early July. This decision came after completing technical support, following regulations in different countries, and coordinating with various crypto exchanges.
Payments will be made on a first-come, first-served basis to platforms that have confirmed necessary information. The process of agreeing on payments started in June 2018, and a court approved a compensation plan in 2021.
Mt. Gox was once a major crypto exchange, handling about 70% of Bitcoin trading volume before filing for bankruptcy due to hacking attacks in 2014. Despite the theft of 850,000 BTC, creditors will only receive a portion of their original holdings. The exchange’s bankruptcy led to a lengthy legal battle before the compensation plan was approved in 2021.
The announcement of payments led to a drop in Bitcoin’s value, causing concern in the market. Some market participants believe the movement of funds may trigger a correction, while others see it as a temporary setback in a bull market.
Analysts predict that a significant amount of Bitcoin will be returned to creditors, with expectations varying on how it will impact the market. Some foresee a decline in Bitcoin’s value in July, while others believe it may lead to a new record high. Traders see the current dip as an opportunity to buy Bitcoin at a lower price.