The trustee of the defunct Mt.Gox exchange, which went bankrupt in 2014, announced plans to begin compensation payments in Bitcoin, Bitcoin Cash, and cash at the start of July.
This decision follows the completion of preparatory processes, including technical support, compliance with regulations in each country, and coordination of transfers with each cryptocurrency exchange.
Payments will commence sequentially to platforms that have confirmed the necessary information.
“Please be patient until specific payments are made,” the announcement stated.
The market reacted nervously to the news release. Bitcoin, on increased volumes, fell below the $62,000 level. Within 15 minutes, the decline exceeded 2.5% at its peak.
The drop in the price of digital gold led to a decline in other cryptocurrencies. Hourly rates ranged from 1.7% to 3.4%, according to CoinGecko.
In May 2024, Mt.Gox began actively moving bitcoins for the first time in five years.
In January, the exchange confirmed creditor addresses for compensation. In April, some platform clients reported receiving fiat payments.
Mt.Gox is expected to distribute assets by October 31, 2024.
Experts at K33 Research concluded that the prospect of Mt.Gox selling bitcoins could “frighten the market” and put pressure on the price.
The civil rehabilitation process for Mt.Gox users began in June 2018. In 2021, the Tokyo court approved the platform’s compensation plan.
The trustee presented the compensation proposal in December 2020. Details of the plan became known in January 2021, and in February, the court approved it for subsequent voting.
The voting started on May 31 and ended on October 20. About 83% of the exchange’s users supported the compensation initiative.