The crypto community is on high alert as the Mt. Gox administrator moves forward with the process of paying creditors, signaling a significant release of bitcoin (btc) and bitcoin Cash (BCH) into the market. This event marks a pivotal moment in one of the most infamous episodes in cryptocurrency history.
Mt. Gox will finally unlock all bitcoin and BCH
According to the latest reports, the administrator of Mt. Gox has confirmed the start of a verification process for eligible paying customers of the defunct exchange. In a recent email distributed to these customers, the administrator outlined the procedure for confirming account ownership and subsequent steps for receiving refunds in btc and BCH through designated crypto exchanges, namely Bitstamp and Kraken.
This process follows the previous start of bank payments in December 2023. The administrator's email says: “The rehabilitation administrator shared your details, including the account information you registered in the online rehabilitation claims submission system MTGOX, with the cryptocurrency exchange or custodian. (the “Exchange”), and the Exchange has subsequently confirmed that you have an account on the Exchange and that you have completed identity verification.”
MtGOX btc distribution is expected to hit the market over the next 2 months and 200,000 btc will be unlocked.
This is in addition to the 600K+GBTC price revision.
The halving in April 2024 will reduce the annual supply by 160,000.
Interesting supply dynamics at play in the coming months. pic.twitter.com/0ZNC52YbAH
—Mindao (@mindaoyang) January 23, 2024
Significantly, numerous Mt. Gox creditors reported receiving these new emails, indicating progress in the long-awaited payment process. However, the email also highlights the importance of maintaining active and verified accounts on designated exchanges to ensure receipt of refunds.
In a related development, CryptoQuant founder Ki Young Ju addressed the recent market movements, noting: “Old bitcoin is moving. “Someone broke into an old piggy bank and distributed its contents, probably through OTC deals.” However, he clarified that these movements have no relation to Mt. Gox and stated: “They have not moved their coins. MtGox sent refunds denominated in Japanese yen to users via PayPal, not bitcoin.”
They haven't moved their coins. MtGox sent refunds denominated in Japanese yen to users via PayPal, not bitcoin.https://t.co/eKnDd23tcF pic.twitter.com/tJWvwEiX4x
– Ki Young Ju (@ki_young_ju) January 22, 2024
Estimates of the total bitcoin that will be released vary, with figures ranging from 142,000 btc to 200,000 btc. Furthermore, the presence of 143,000 BCH and 69 billion Japanese yen under the control of Mt. Gox further compounds the complexity of the situation.
Founded in 2010, Mt. Gox was once the largest bitcoin exchange in the world, handling approximately 70% of all btc transactions before suffering a catastrophic security breach in 2014. The exchange lost 850,000 btc in the hack, lo which led to one of the most important. bankruptcies in the crypto space.
As the crypto community prepares for the possible market impact of this major release of funds, analysts are closely monitoring the situation, awaiting further details and confirmation from Mt. Gox. The coming months are expected to be critical as the countdown begins for the possible release of at least 142,000 btc, which could have a significant impact on the price of bitcoin.
At the time of this publication, btc was trading at $38,880.
Featured image created with DALL·E, chart from TradingView.com
