After more than ten years of waiting, Mt. Gox creditors are expected to receive repayments of 142,000 BTC and 143,000 BCH by October this year. Today, according to screenshots shared by Reddit users, it appears that Kraken is preparing to facilitate the payment for Mt. Gox creditors, who may soon receive repayments in BTC and BCH.
Previously the largest Bitcoin exchange in the world, Mt. Gox was hacked in 2014 and lost 850,000 Bitcoins (worth approximately $460 million at that time). Now, after a decade, the compensation process is accelerating, and it is expected that by October this year, creditors will be paid 142,000 BTC and 143,000 BCH.
In late April, it was reported that many creditors had received cash repayments and showed upcoming Bitcoin repayments on Reddit.
Kraken’s BTC payment API emerges
Today, a Reddit user named BirdObjective2459 obtained an API response from a legal group, as shown in the image below, suggesting that Kraken’s support for Bitcoin repayments may soon begin.
The API response in the image shows:
BTC Allocation:
Creation Date: 2024-05-13
Remittance Service Provider: Kraken
Remittance Status: Preparing
Repayment Currency: BTC
BCH Allocation:
Creation Date: 2024-05-13
Remittance Service Provider: Kraken
Remittance Status: Preparing
Repayment Currency: BCH
If this API response is accurate, it indicates that Kraken is preparing for the payment, and creditors may soon receive repayments in BTC and BCH.
Could this lead to Bitcoin sell-off?
According to the latest data released by Mt. Gox, the Bitcoin balance in the liquidation trustee’s address is 137,890. It is also estimated that by October this year, Mt. Gox will pay creditors a total of approximately $9.5 billion worth of 142,000 BTC, approximately $73 million worth of 143,000 BCH, and 69 billion yen (approximately $510 million).
Although the compensation that Mt. Gox creditors will receive varies significantly in terms of the coin’s base price, receiving the repayment is undoubtedly good news. Moreover, Bitcoin’s price has increased by about ten times over the past ten years and is currently still above $62,000. Once the total of over 140,000 BTC is returned to investors, it may cause short-term selling pressure and bring volatility to the market. One Reddit user responded, stating:
Related Reports
Bitcoin Faces Massive Sell-Off from Mt. Gox! Announces Start of Claims: 200,000 BTC Unlocked in the Next Two Months
Are 140,000 Bitcoins Being Dumped? Mt. Gox Creditors Receive Yen Compensation, Repayment Deadline Extended to October 2024
DCG Opposes Genesis’ Subsidiary Restructuring Plan: Repayment Amount Should Be Valued at “Bankruptcy Date Price”