In 2014, the exchange Mt. Gox shocked the industry with a loss of up to 850,000 BTC, which also ended the platform. Currently, the exchange’s two largest creditors have opted to make a lump sum payment in advance without selling their bitcoin holdings.
Payment is scheduled for September 2023.
Despite the option to wait all the hills. The Gox settlement could result in higher payouts, but according to sources, that could be another 5-9 years away. The option to pay early will allow creditors to receive payments faster and avoid any potential market impact that a massive Bitcoin sell-off might cause.
Two of Mt.’s largest creditors, according to sources. Gox chose to receive most of its post-bankruptcy recovery in BTC.
Those creditors are the now-defunct New Zealand exchange Bitcoinica and the MtGox Investment Fund (MGIF), which accounted for about 90% of Mt. Gox and will receive its recoverable funds, an estimated 21% of the platform’s initial holdings at the time of the hack.
In 2014, hackers stole 850,000 BTC, worth $460 million at the time. After the hack, Mt. Gox has about 142,000 BTC, 143,000 BCH, and 69 billion yen left.
According to multiple sources, creditors who opt for a one-time payment can receive payments in BTC, BCH, and Japanese yen, or request that the entire amount be converted into fiat currency. By opting to pay in advance, Bitcoinica and MGIF have also decided to go crypto, meaning most of their payments will be in BTC.
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If creditors refuse to pay the lump sum in advance, their only recourse is to wait for the conclusion of civil recovery actions, including CoinLab’s lawsuit against the Mt. Gox assets. While this option may provide a slightly higher recovery rate, there is no guarantee that creditors will receive more than 90% of recoverable tokens at once.
In addition, a legal analysis by a Japanese law firm said it could take years to recover the money.
Creditors have until March 10, 2023, to decide whether to accept a lump sum payment early or continue to wait for a potentially larger payment at an unspecified future time.
With expected returns only a few months away, analysts fear a massive Bitcoin sell-off could follow.
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According to Cryptoslate