The two largest creditors of Mt. Gox chooses to receive compensation in Bitcoin

According to sources from CoinDeskthe two largest creditors of Mt.Goxthe “infamous” Bitcoin exchange that was hacked 9 years ago, has chosen to receive its assets in the form of Bitcoin (BTC).

The two largest creditors Mt. Gox decided to receive compensation in BTC

These two creditors, New Zealand-based crypto exchange Bitcoinica (now closed) and investment fund MtGox (MGIF), account for about a fifth of Mt.Gox’s claims. Accordingly, these two units will receive back 90% of the assets claimed (equivalent to about 21% of the value of the assets they were stuck at at the time of the 2014 hack).

With the Bitcoin price at the time of the hack being between $300 and $500, the fact that Mt. Gox refunding investors has long been considered a “slow bomb” with the cryptocurrency market when the current BTC value is already dozens of times the amount then. The exchange’s creditors will most likely not hold the coin after receiving it because the process of their legal fight with the exchange has also been up to 9 long years.

If these two creditors choose to pay in fiat, the trustee overseeing the bankruptcy will likely be forced to sell off a significant portion of the BTC recovered from Mt. Gox to exchange for cash. However, Bitcoinica and MGIF’s BTC payment option still does not guarantee that they will continue to keep the BTC received.

As for the rest of the lenders, if they don’t want to receive early compensation at 90% of the amount owed, the only other option is to wait until the lawsuit revolves around the Mt. Gox production ended.

In theory, this option could yield slightly higher recoveries, but there’s still no guarantee that it won’t be lower than 90%.

Creditors have until March 10, 2023 to decide whether to receive early compensation or to continue to wait to be paid at a potentially higher value in the distant future.

At the end of August 2022, Rumor has it that Mt. Gox is about to pay the amount recovered. However, the information is not accurate because this is only the deadline for the creditor to transfer the right to claim compensation to another party and at this time the creditor will start. Register an account to get your money back.

In January, the Mt. Gox has accepted to postpone the return of assets for another 2 months because of unexpected incidents affecting the creditor’s compensation account registration process.

Trustee of Mt. Gox is currently holding 142,000 BTC, 143,000 BCH, and 69 billion Japanese yen – compared to 850,000 BTC lost in the 2014 hack.

Immediately after the news that the two largest creditors of Mt. Gox decided to take back the asset in the form of BTC, the Bitcoin price on the evening of February 16 jumped to $ 25,000, the highest value threshold since June 2022.

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