Mt. Gox Creditors Report Account Breach Attempts, Another Bitcoin Hack Underway?

Cryptocurrency

Mt. Gox Compensates Over 17000 Creditors, What’s Next? – Crypto News

Published

12 months ago

July 25, 2024

Dripp

Defunct crypto exchange Mt. Gox has shown some encouraging signs of initiating the process of repaying the creditors after the exchange’s shut down in 2014. As of July 24, 2024, repayments in BTC and BCH have been made to over 17,000 rehabilitation creditors.

Mt. Gox Repayments Progress

In a statement released by Mt. Gox, the Rehabilitation Trustee has made Bitcoin and Bitcoin Cash repayments to some of the rehabilitation creditors through designated crypto exchanges. This is after similar repayments on the 5th of July and 16 of July 2024 respectively. The trustee has therefore to date paid over 17,000 creditors to the date of this report.

In the future, the repayments are made subject to a number of conditions such as validating the accounts in the register and agreeing to the Agency Receipt Agreement by the specified exchanges.

Concurrently, the agreements between the trustee and the exchanges must be concluded, and the repayments must be refined. Consequently, creditors who have not been paid should wait for further developments.

Bitcoin Market Response to Repayments

Ki Young Ju, the CEO of CryptoQuant, shared his thoughts on how the market reacted to the Mt. Gox repayments. He pointed out that, there hasn’t been much of an increase in the trading volumes or outflows on Kraken despite the repayments.

He stated that the Mt. Gox retail holdings will act similarly to the other retail holdings, and even if a part of the retail holdings is sold the current market condition can easily handle the volume without much affecting the prices.

After the Mt. Gox creditors’ repayment, all global time zones have passed.

Kraken’s spot #Bitcoin trading volumes and exchange flows are normal.

The instant dump you worried about didn’t occur. Any price drop would be likely due to market sentiment, not Mt. Gox selling. https://t.co/BKRCIMALsz pic.twitter.com/iZRejMgj83

— Ki Young Ju (@ki_young_ju) July 24, 2024

Ju said that every time zone of the world has elapsed since the repayments started, and no drastic dumping of Bitcoin occurred. If there will be price decrease, it could not be attributed to Mt. Gox selling its BTC in the market since they In the public domain. He stated,

“Even if about 10% is immediately dumped, it is insignificant compared to the existing demand for Bitcoin. And even if 100% were to be dumped, it would not be significant unless it happens immediately.”

This is in agreement with Ju’s analysis based on recent market trends. In the past three weeks alone, the US spot ETF saw an inflow of $45,000, the market could contain the higher supply if sold gradually.

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