Mark Karpeles, the former owner and head of the Mt.Gox exchange, does not foresee a sell-off of bitcoins distributed among the platform’s clients.
As far as I know everything is fine with MtGox. The trustee is moving coins to a different wallet in preparation of the distribution that will likely happen this year, there is no imminent sale of bitcoins happening.
— Mark Karpelès (@MagicalTux) May 28, 2024
“As far as I know, everything is fine with Mt.Gox. The trustee is moving coins to a different wallet in preparation for the distribution, which will likely occur this year. There is no imminent sale of bitcoins,” he wrote.
On May 28, the exchange consolidated its cryptocurrency, valued at approximately $9.8 billion, into a single address through a series of transactions.
The transfers were commented on by Mt.Gox trustee Nobuaki Kobayashi.
“In accordance with the rehabilitation plan, the trustee is preparing to make payments on some of the cryptocurrency claims for which assets have been allocated,” the statement reads.
He explained that bitcoins and Bitcoin Cash will be distributed among creditors either as digital assets or sold for fiat, depending on the creditor’s choice.
Following the movement of the bankrupt exchange’s cryptocurrency, the market reacted negatively, with the price of digital gold falling below $68,000. At the time of writing, prices have recovered to levels above this mark.
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. In January 2021, details of the plan became known, and in February, the court approved it for subsequent voting.
The voting started on May 31 and ended on October 20. Approximately 83% of the exchange’s users supported the compensation initiative.