Prior to paying out 137,000 Bitcoin (BTC) to customers on the hacked mountain. Gox trading platform, the cryptocurrency market has been full of speculation regarding the effect of compensation.
Especially with Bitcoin struggling, there are concerns that Mt. Gox customers may dispose of their newly redeemed bitcoins which leads to additional volatility in the market.
However, this is not the case because during the registration application, creditors were given the option to receive Bitcoin early, in a partial lump sum or wait until the end of civil rehabilitation when more funds are available to exchange.
Payments are set to begin in late August, according to the files of the court-appointed guardian, Nobuaki Kobayashi.
“After discussions with the court and according to the rehabilitation plan, the rehabilitation trustee plans to determine the assignment, etc. Repayment is safe and secured,” Kobayashi said.
Payment process up to the last months
According to crypto-analyst Danny Devan, the process may take several months and does not pose an immediate threat to impact the price of bitcoin.
“There is a lot of misinformation circulating around Twitter, so let’s make something clear. Mt.Gox will not issue all 137,000 bitcoins tomorrow. Payments start tomorrow until creditors start receiving their bitcoins,” Devan said in one. tweet Posted on August 27.
Elsewhere, in a tweet On August 26, crypto trading expert Michael van de Poppe described the fear as “unfounded.”
“The fear surrounding the release of Mt. Gox Bitcoins is simply unwarranted,” said Bob.
Meanwhile, in the rehabilitation plan released last November, Kobayashi indicated that creditors can also choose to receive BTC in different currencies including dollars or bitcoin cash.
Also, creditors are unlikely to liquidate their bitcoin immediately as they are early adopters of cryptocurrency and may wait for the asset to come together again to make money. Notably, Bitcoin is down nearly 60% from its all-time high.
Bitcoin Still Struggling
Amid this speculation, Bitcoin is still trying to hold over $20,000 after temporarily dropping below value on August 27. At the time of writing, the asset is trading at $20,020 with losses of over 1% over the past 24 hours.
It is worth noting that Mt.Gox was the largest bitcoin exchange before losing about 850,000 BTC, worth about $500 million at the time to hackers. So far, only 150,000 stolen bitcoins have been recovered.
As reported by Coinphony in October 2021, the voting period for Mt. Gox’s civil rehabilitation plan after the Tokyo District Court approved its draft in December 2020.
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