In the world of cryptocurrency, MtGox exchange was subjected to a cyber attack in 2014, announcing the theft of 850,000 Bitcoins. Creditors assigned to the exchange have received an email stating that payments will commence soon. The crypto community is curious whether this will lead to a sale when a massive amount like 142,000 BTC is distributed.
Trustee’s Announcement Brings Hope to MtGox Creditors
In a significant development, creditors of MtGox received emails indicating that the repayment process has begun under the bankruptcy trustee. The trustee team summarized their plans to start distributing funds in cash throughout 2023 and continue until 2024.
This move brings a ray of hope to the creditors who have been waiting for the resolution of the MtGox fiasco for a long time. The communication from the trustee team sheds light on the proposed distribution, which includes 142,000 BTC, 143,000 BCH, and 69 billion yen, along with other MtGox assets.
The comprehensive repayment plan aims to alleviate the concerns of creditors who have patiently awaited compensation since the turbulent collapse of the platform. The email emphasized the trustee’s efforts to initiate cash repayments within the calendar year of 2023.
Repayments Could Trigger Bitcoin Sales
The announcement by the trustee team, stating that repayments will continue until 2024, implies that a significant amount of Bitcoin will be in the market in December. Accordingly, the presence of 142,000 Bitcoins (BTC) in the market could result in a wave of sales.
The wave of sales could lead to a decline in the price of Bitcoin. Additionally, the absorption of over $5 billion worth of Bitcoin (BTC) in the market will not be easy. While creditors eagerly await future repayments, the trustee’s commitment to distribute funds in both 2023 and 2024 represents a significant step towards concluding the MtGox saga.
On the other hand, the announcement mentioned in the email is a sign that the wheels of financial recovery will be set in motion after years of uncertainty. It also instills a sense of optimism among the victims of the incident. If the distribution takes place, the effects on the cryptocurrency market can be expected to be seen in December. Bitcoin is currently trading at $36,486.
