Struggling crypto platform Mt. Gox is reportedly gearing up to initiate Bitcoin repayments to select creditors soon, based on insights from Reddit sources. Despite extending the repayment delay until October 2024, those creditors who’ve completed the necessary documentation may anticipate receiving their BTC repayments within the next two months.
The Mt. Gox Rehabilitation Trustee has been sending confirmation emails to creditors, validating their account ownership and identity verification through the crypto exchange or custodian initially specified as the payment address for BTC/BCH, as disclosed on a subreddit.
Mindao Yang, the founder of decentralized stablecoin protocol dForce Network, took to X to caution the crypto community about the imminent release of Mt. Gox’s Bitcoin holdings into the market over the next couple of months. Yang highlighted that creditors are poised to unlock substantial amounts from the 200,000 BTC, in addition to the 600,000 already lost, and the repricing of GBTC following the approval of the spot Bitcoin ETF.
Yang also pointed out the potential impact of the Bitcoin halving, which is projected to decrease the annual supply by 160,000 coins. He emphasized the intriguing supply dynamics that are likely to unfold in the upcoming months.
To qualify for BTC/BCH repayment, creditors must maintain an active status for their accounts; otherwise, they risk being unable to receive compensation if their accounts are disabled or frozen in the future. In December 2023, some creditors reported receiving compensation in Japanese yen directly into their PayPal accounts, and repayments are ongoing, with many also receiving payments in US dollars.
TokenUnlocks data reveals that Mt. Gox still holds more than 137,800 BTC, valued at $5.5 billion, with a total BTC amount of 162,105, worth $6.5 billion.
The prospect of selloff pressure arising from Mt. Gox Trustee’s Bitcoin repayments is a subject of debate among experts. While some anticipate a gradual repayment process unfolding over several months, others argue for a lump sum repayment happening all at once. Mindao Yang suggests that any selling pressure should be relatively limited, considering the gradual sale of debts over the years, with market prices already reflecting these transactions.
Related: CryptoQuant CEO Reveals Grayscale’s Bitcoin Selling Activities
In the last 24 hours, the BTC price has experienced a 3% decline, currently trading at $39,884, with a low and high of $38,629 and $41,668, respectively. Additionally, the trading volume has surged by 120% in the last 24 hours, indicating heightened interest among traders.
