Bloomberg: Mt. Gox’s Largest Creditor Plans to Hold Returned Bitcoins

Mt. Gox’s largest creditor plans to hold onto the bitcoins that are due to be returned in autumn 2023. Bloomberg reports.

According to sources, Mt Gox Investment Fund will receive 90% of the lost investments, in an approximate split of 70% Bitcoin and 30% fiat. The exact amount of the recovery is not specified, but journalist Colin Wu estimates it could reach 30,000 BTC.

Mt. Gox’s largest creditor, Mt Gox Investment Fund, plans to hold rather than sell bitcoin that will be paid off September this year. The fund and Bitcoinica together accounted for one-fifth of the total amount, about 30,000 bitcoins. https://t.co/UmaoFeI6mS

— Wu Blockchain (@WuBlockchain) March 9, 2023

According to the updated Mt. Gox announcement, the remaining creditors must decide by April 6 when and in what form payments will be made. They may receive their assets early by October 31, 2023 at a lower rate, or wait for the conclusion of the court process. Earlier filing deadlines had been set for March 10.

The once-largest Bitcoin exchange Mt. Gox collapsed in early 2014. This followed reports of its alleged hacking and the theft of 800,000 BTC ($480 million at the time).

The process of compensating creditors began in 2018. Thereafter, concerns about a potential market downturn after the return of 150,000 BTC (~$3.2 billion at the time of writing) began to emerge in the community.

Nevertheless, UBS analysts stated that the forthcoming Mt. Gox payments are not a cause for concern. Some creditors may increase selling pressure, but their actions will be less concentrated and do not pose a significant threat to the price of the leading cryptocurrency, the firm explained.

Back in July 2022, Mt. Gox trustee Nobuaki Kobayashi began preparations for compensation payments.