Mt. Gox begins compensating creditors with Bitcoin (BTC) and Bitcoin Cash (BCH)

This bankrupt exchange has started repaying creditors through a designated cryptocurrency exchange as part of its repayment plan.

Once the world's largest cryptocurrency exchange, Mt. Gox, which collapsed in 2014, is now working on repaying its creditors. The repayment process began on July 5, 2024, involving payments in Bitcoin (BTC) and Bitcoin Cash (BCH). This marks a significant milestone in the long bankruptcy proceedings of the exchange. However, there is still $7 billion worth of Bitcoin remaining in cold wallets awaiting distribution, causing overall market sentiment to be quite low. There are concerns that creditors receiving Bitcoin may sell large amounts in the market, leading to a continuous decline in Bitcoin prices.

BTC at $55K, ETH at $2900! The market continues to collapse, on-chain transactions surge, and the sentiment turns to fear.

Mt. Gox Begins Repayment to Creditors

The first batch of repayments is being made to certain creditors through designated cryptocurrency exchanges as part of the repayment plan. An official document circulating outlines the process and conditions of the repayment, although the official website link is no longer active.

"On July 5, 2024, the trustee for the repayment made repayments to certain creditors in Bitcoin and Bitcoin Cash through some designated cryptocurrency exchanges according to the repayment plan," the document stated.

Conditions for Future Repayments by Mt. Gox

For the remaining creditors, repayments will occur "promptly" upon meeting several conditions, which include:

1. Account Verification: Confirming the validity of creditors' accounts to ensure payments are made to legitimate entities.
2. Acceptance of Terms: Creditors must agree to the intention of the agency receipt agreement provided by designated cryptocurrency exchanges.
3. Security Assurance: Ensuring all transactions are securely conducted to prevent potential fraud or misuse of funds.
4. Completion of Procedures: Finalizing discussions between the trustee and exchanges regarding the repayment process to streamline the procedure.

The initiation of repayments by Mt. Gox is a positive development for its long-suffering creditors, although it may be a painful process for the cryptocurrency trading market.