The bankrupt Bitcoin exchange Mt.Gox announced on Monday (24th) that it will begin repaying creditors in the form of Bitcoin (BTC) and Bitcoin Cash (BCH) starting from early July 2024.
In the announcement, Mt.Gox stated that the trustee has been preparing for repayments in the form of BTC and BCH in accordance with the reorganization plan, and these preparations have now been properly arranged. After completing the necessary information exchange and confirmation with relevant exchanges, Mt.Gox will begin repayments in a timely manner, starting from early July 2024.
Following this news, BTC and BCH prices experienced approximately 3% and 7% drops respectively in a short period of time. As of the deadline, the trading prices for BTC and BCH were $61,380 and $354 respectively.
According to previous reports by Zombit, a large amount of Bitcoin was transferred out of the online address marked as Mt.Gox at the end of May. The official confirmation later stated that these online transactions were preparations for creditor repayments on October 31. Based on data compiled by the online information platform Arkham, Mt.Gox’s wallet holds approximately 141,000 Bitcoins (valued at $8.72 billion).
If Mt.Gox creditors choose to sell their Bitcoins upon receiving the repayments, it will be a significant test for the market’s ability to absorb large orders. Cryptocurrency market research firm Kaiko Research previously analyzed that the market depth for BTC and BCH has returned to levels before the collapse of the FTX exchange. If selling occurs in the short term, the market depth may help mitigate potential price fluctuations.