The cryptocurrency world has been abuzz with the news that the defunct Mt Gox exchange has finally begun repaying its creditors in both Bitcoin and Bitcoin Cash. This long-awaited development comes as a relief to many who have been patiently waiting for their funds to be returned.
Rehabilitation Plan in Motion
According to the announcement made by the Mt Gox trustee, the repayments are being made as part of the rehabilitation plan. Eligible creditors will receive their allocations promptly, provided they meet certain conditions, such as confirming the validity of their registered accounts and agreeing to the designated crypto exchanges’ terms.
Massive Transactions Observed
Interestingly, the trustee’s announcement came shortly after Mt Gox had moved a staggering 47,228.7 BTC (approximately $2.71 billion) to a wallet earlier today. The assets were then transferred in multiple transactions, including a transfer of 1,545 BTC ($85 million) to a hot wallet on the crypto exchange Bitbank.
“We ask eligible rehabilitation creditors to wait for a while,” the Mt Gox trustee said.
Market Reaction and Liquidations
The repayment news coincided with a significant drop in the price of Bitcoin, which fell below $54,000 at one point during the day. The broader cryptocurrency market also saw over $665 million in liquidations across centralized exchanges as Bitcoin faced heavy selling pressure.
Conclusion
The long-awaited Mt Gox repayments are finally underway, providing relief to the exchange’s creditors. However, the market reaction has been mixed, with Bitcoin and the broader crypto market experiencing significant volatility. As the rehabilitation process continues, it remains to be seen how the situation will unfold and what impact it will have on the broader cryptocurrency landscape.
