The bankrupt Bitcoin exchange Mt. Gox announced on Monday (24th) that it will begin repaying creditors in the form of Bitcoin (BTC) and Bitcoin Cash (BCH) starting in early July 2024.
According to the announcement from Mt. Gox, the trustee has been preparing for repayments in BTC and BCH according to the reorganization plan, and now that preparations are in place and necessary information has been exchanged and confirmed with relevant exchanges, Mt. Gox will start the repayments in due course, “repayments will begin in early July 2024”.
As a result of this news, BTC and BCH prices both experienced a drop of around 3% and 7% respectively in a short period of time, with BTC and BCH trading at $61,380 and $354 respectively at the time of writing.
According to previous reports by Zombit, a significant amount of Bitcoin was transferred out of the wallet labeled as Mt. Gox at the end of May, which was later confirmed by the official in an open letter as preparations for creditor repayments on October 31st. According to data compiled by the blockchain intelligence platform Arkham, the Mt. Gox wallet holds approximately 141,000 Bitcoins (worth $8.72 billion).
If Mt. Gox creditors choose to sell their Bitcoins upon receiving the repayments, it will be a significant test of the market’s ability to absorb large orders. Cryptocurrency market research firm Kaiko Research previously analyzed that the market depth for BTC and BCH has returned to levels before the collapse of the FTX exchange, and if selling occurs in the short term, the market depth may help mitigate potential price fluctuations.
