The two largest creditors of Mt. Gox have chosen to receive compensation primarily in the form of Bitcoin

2023-02-17 08:14:54

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According to ChainCatcher news and a report by CoinDesk, two largest creditors of the cryptocurrency exchange Mt. Gox, which collapsed nine years ago due to a hacking attack, have chosen to receive compensation primarily in the form of Bitcoin (BTC). If they had opted for cash compensation, the trustee might have been forced to sell a large amount of Bitcoin recovered from Mt. Gox, which could lead to a drop in Bitcoin prices.

Due to the choice of a one-time advance payment, the two creditors, New Zealand cryptocurrency exchange Bitcoinica and MtGox Investment Funds (MGIF), will receive 90% of their recoverable funds, with compensation expected to be paid by September 30 of this year. Together, they account for about one-fifth of the total Mt. Gox claims.

Sources say that if they choose to wait for all Mt. Gox lawsuits to reach a settlement, they might receive a higher payout, but it could take an additional 5 to 9 years. Mt. Gox was once the world's largest cryptocurrency exchange and was hacked in 2014. Hackers stole 850,000 Bitcoins, worth $460 million at the time. Mt. Gox has a remaining balance of approximately 142,000 Bitcoins, 143,000 Bitcoin Cash (BCH), and 69 billion yen. (source link)

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