“Decade-long Wait Finally Ends: Mt.Gox Exchange Repays Debts! Will the Settlement of 140,000 BTC Cause a Bitcoin Plummet?”

Creditors of the bankrupt exchange Mt. Gox have recently stated that they have received cash repayments, and the repayment progress for Bitcoin has also been updated. It is expected that by October of this year, Mt. Gox will pay a total of 142,000 bitcoins, 143,000 BCH, and 69 billion yen to the creditors.
(Prior summary:
Bitcoin faces massive sell-off from Mt. Gox! Announces start of claims: 200,000 BTC may be unlocked in the next 2 months.)
(Background:
What has happened to Mt. Gox, once the dominant Bitcoin exchange in the market?)
Table of Contents
Mt. Gox updates Bitcoin and fiat repayment information
Mt. Gox plans to pay creditors 142,000 bitcoins by the end of this year
Will this cause a BTC sell-off?
Recap of the Mt. Gox incident
Once the largest Bitcoin exchange in the world, Mt. Gox was hacked in 2014, resulting in the theft of 850,000 bitcoins (valued at approximately $460 million at the time). After 10 years, the compensation process is gradually progressing.
Mt. Gox updates Bitcoin and fiat repayment information
Some Mt. Gox creditors have recently informed the media that their creditor accounts have been updated, including repayment status, amount already repaid, and amount yet to be repaid, which can now be checked. (The image below shows that cash repayment has been completed on February 20th)
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Image source: Mt. Gox insolvency hub
Another creditor also posted on Reddit, confirming receipt of compensation:
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Mt. Gox plans to pay creditors 142,000 bitcoins by the end of this year
According to the latest data released by Mt. Gox, the bitcoin balance in the liquidator’s address is 137,890. It is expected that by October of this year, Mt. Gox will pay a total of 142,000 bitcoins, 143,000 BCH, and 69 billion yen ($510 million) to the creditors.
Although there is a significant difference in compensation for Mt. Gox creditors in terms of cryptocurrency, the value of Bitcoin has increased by about ten times in the past 10 years, and it is currently near its all-time high. Once over 140,000 BTC is returned to investors, it may cause short-term selling pressure and bring volatility to the Bitcoin market.
Recap of the Mt. Gox incident
Mt. Gox exchange was launched in 2010 and once handled nearly 75% of the total Bitcoin transactions. However, in February 2014, the company suffered a hack that led to the loss of 850,000 bitcoins, resulting in bankruptcy and catastrophic losses for investors.
Since the bankruptcy, the bankruptcy litigation process has been ongoing to find compensation methods for users affected by Mt. Gox’s bankruptcy. The bankruptcy trustee hopes to compensate these users’ losses through the bitcoins held by the exchange, rather than using the equivalent value in fiat currency at the time. Therefore, after 10 years, the progress of this compensation case has been slow.
In October 2022, Mt. Gox announced the opening of creditor registration for claims, with 140,000 bitcoins waiting to be delivered for settlement. In November of last year, the Mt. Gox bankruptcy trustee announced plans to start making cash compensation payments to creditors in 2023 and continue payments in 2024. In January of this year, Mt. Gox announced the start of unlocking bitcoins for repayment to creditors.
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Related Report
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