The victims from the infamous Mt. Gox hack in the year 2014 are to receive a record of 150,000 Bitcoin reimbursements for the coming months. However, it may cause selling pressure as others might cash out their gains.
A Short Mt. Gox Story
The Japan-based Mt. Gox was once the biggest crypto exchange globally: It was said to have handled over 80% of all the Bitcoin transactions in the early years.
A massive 740,000 Bitcoin hack happened in 2014 – almost 6% of Bitcoin supply during that time has led to the exchange going bankrupt and the start of the legal cases against the former CEO Mark Karpeles, the trade. The stolen funds were valued to over $14B from December 2017 prices.
While the 200,000 Bitcoin was ultimately recovered, the location of the outstanding 650,000 is still a mystery. But, under the Japanese law and case coverage available everywhere, creditors were accountable for receiving a part of their lost funds at enormously inflated prices and an instant profit after years of waiting.
Reimbursement of the Recovered Bitcoin will be imminent.
As documents by the Tokyo District Court and a re-filed date by Mt. Gox Rehabilitation Trustee say, all Mt.Gox victims are likely to receive a new date for the funds that once stolen on the exchange.
The funds were supposed to be returned last July 1. Still, then again, a court hearing had delayed it to an October date after Nobuaki Kobayashi, Mt. Gox’s Trustee, submitted a motion that demands another extension for the Bitcoin settlement.
Discussing the terms, the creditors are set to receive over 150,000 Bitcoin (nearly $1.5B currently). And when one assumes that the original purchase cost around $400 and a 20% recovery rate, every creditor is set to receive an additional $2,000 based on Bitcoin’s price growth.
In the meantime, “Mr.Whale,” an anonymous, widespread Twitter account who shared long-term calls and insights on the crypto market, pondered in on the topic via a tweet:
Although the new date in the Mt.Gox re-filing on October 15 can submit any sell-offs, a major sell-side can even be on Bitcoin’s cards and the broader crypto market after the creditors have received their funds.