Mt. Gox Trustee Prepares to Distribute Recovered Bitcoin (BTC) and Bitcoin Cash (BCH) to Affected Customers

Bitcoin (BTC) has encountered a tumultuous price performance in the past months, struggling to surpass previous record levels. However, the situation may worsen as the trustee overseeing the defunct Bitcoin exchange Mt. Gox has revealed the definitive date for commencing Bitcoin and Bitcoin Cash (BCH) repayments to affected customers.

Bitcoin (BTC) price action has been turbulent in recent months, struggling to break past previous record highs. However, the situation might get worse as the trustee overseeing the bankrupt Bitcoin exchange Mt. Gox has now disclosed the final date for commencing Bitcoin and Bitcoin Cash (BCH) repayments to impacted customers.

This news has sparked担忧s over the potential role these customers might play in adding to the ongoing selling pressure in the BTC market.

Mt. Gox Trustee Prepares for Redemption

In a recent announcement on June 24, the Mt. Gox trustee and rehabilitation debtor revealed that preparations for Bitcoin and Bitcoin Cash repayments are being made as part of the Rehabilitation Plan.

Once these preparations are complete, the trustee will begin making repayments to the cryptocurrency exchanges with which the necessary information has been exchanged and confirmed. The repayment process is reportedly set to start in July 2024.

The trustee claims to have dedicated significant time to ensuring “safe and reliable repayments” to creditors, which includes implementing technical measures for secure transactions, adhering to financial regulations in multiple jurisdictions, and discussing repayment arrangements with the cryptocurrency exchanges that are expected to be involved in the process.

Repayments will be made in the order of completion of the exchange and confirmation of the required information with the exchanges involved. Creditors are also advised to be patient throughout the repayment process.

To Sell or Hold Bitcoin?

Interestingly, a similar price drop occurred in May when news emerged about Mt. Gox initiating repayments to affected customers. This development caused the BTC price to drop from its peak of $70,600 to below the $68,000 level, preventing the cryptocurrency from retesting its all-time high (ATH) of $73,700 in mid-March.

The total amount of Bitcoin to be released is still unclear, with estimations ranging from 142,000 BTC to 200,000 BTC. Moreover, Mt. Gox still controls 143,000 BCH and 69 billion Japanese yen, adding another layer of complexity to the situation.

However, Adam Back, the CEO of Blockstream, previously expressed doubt about the possibility of Mt. Gox creditors dumping BTC in the market. Back highlighted the long-term potential of Bitcoin and questioned the logic behind selling at high prices when the market is set for further growth.

Back further suggested that keeping Bitcoin in cold storage would be a wiser option, considering the overall favorable market conditions, with the BTC price expected to continue rising in the coming months despite the current price woes.

Established in 2010, Mt. Gox was once the world’s largest Bitcoin exchange, handling about 70% of all BTC transactions until it became the victim of an alleged security breach in 2014. The exchange lost 850,000 BTC in the hack, leading to one of the largest bankruptcies in the crypto space.

Overall, the repayment process for Mt. Gox creditors adds another layer of uncertainty to the Bitcoin market, contributing to recent price fluctuations.

While concerns remain, industry experts like Adam Back emphasize BTC’s long-term potential, encouraging creditors to consider holding their Bitcoin instead of selling at current price levels.

Currently, the largest cryptocurrency in the market is trading at $61,330, showing a steep 11% decrease in the last 30 days alone.

Featured image from DALL-E, chart from TradingView.com

News source：https://www.kdj.com/cryptocurrencies-news/articles/mt-gox-trustee-prepares-distribute-recovered-bitcoin-btc-bitcoin-cash-bch-customers.html

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