Mt. Gox to distribute $9 billion of bitcoin, bitcoin cash repayments from beginning of July
Quick Take
- Mt. Gox is set to begin distributing around $9 billion worth of bitcoin and bitcoin cash repayments from July, according to the Rehabilitation Trustee.
- Bitcoin fell around 3% to $60,500 following the announcement.
Defunct bitcoin exchange Mt. Gox is set to begin distributing around $9 billion worth of bitcoin and bitcoin cash repayments from July, according to a notice sent by Rehabilitation Trustee Nobuaki Kobayashi on Monday.
“The Rehabilitation Trustee has been preparing to make repayments in Bitcoin and Bitcoin Cash under the Rehabilitation Plan. Now that these preparations are in place, the Rehabilitation Trustee will commence the repayments in Bitcoin and Bitcoin Cash … from the beginning of July 2024,” Kobayashi wrote in the notice.
Kobayashi said the debtor had taken time to ensure safe, reliable and compliant repayment arrangements and will “commence the repayments in the order of the cryptocurrency exchanges with which the Rehabilitation Trustee will complete the exchange and confirmation of the required information.”
Bitcoin had already started the day poorly, with $48 million worth of long liquidations over the past 24 hours as its price slid below the $63,000 mark to a monthly low of $62,270. Following the Mt. Gox announcement, the largest cryptocurrency by market cap fell a further 3% to around $60,500 before recovering slightly, according to The Block's bitcoin price page.
Mt. Gox bitcoin moved for the first time in five years
The news comes after Mt. Gox creditors reported that the trustee’s rehabilitation claims system had been updated with amounts of bitcoin and bitcoin cash to be repaid in April. In May, Mt. Gox then moved at least $2.9 billion in bitcoin for the first time in five years.
Mt. Gox was founded in 2010 and became the largest bitcoin exchange globally until the platform suffered a security breach in 2014, resulting in the loss of 850,000 bitcoin.
In September 2023, the trustee of the now-defunct exchange announced that creditors would be reimbursed with 142,000 bitcoin ($8.95 billion) and 143,000 bitcoin cash ($55 million), as well as fiat currency totaling 69 billion Japanese yen ($432 million), by a new deadline of October 2024.
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