The Two Largest Creditors Of Mt.Gox Agree To Receive Bitcoin Compensation

Key Points:

• The two largest creditors of Mt. Gox have decided to receive their bankruptcy recovery payments primarily in bitcoin (BTC).
• With this settlement, the two creditors will receive 90% of their recoverable amount, and the compensation is expected to be paid by September 30 this year.
• If you choose to wait until all Mt. Gox is settled, you may get a higher payout, but you may have to wait for another 5 to 9 years.

According to people familiar with the matter, the two largest creditors of the collapsed cryptocurrency exchange Mt.Gox have accepted compensation payments in Bitcoin, according to Coindesk.

If they choose to receive fiat compensation, the trustees may be forced to sell large amounts of bitcoin due to Mt.Gox, which could cause the price of bitcoin to drop.

Due to the one-time prepayment option, the two creditors of New Zealand crypto exchange Bitcoinica and the Mt.Gox Investment Fund (MGIF) will receive 90% of their recoverable funds and expected compensation ​to be paid on September 30 year. Together, the two make up about a fifth of the total claim of Mt.Gox.

The payments will arrive as part of an early one-time payment option offered to creditors, currently scheduled for September 30. However, the Japanese trustee oversees the process and has a history of being on time.

If you choose to wait until all of Mt.Gox is settled, the sources said you might get a higher payout, but you may have to wait five to nine years.

In theory, this option could offer a slightly higher recoverability. Still, creditors have no guarantee that it will be at least 90% of the recoverable shares guaranteed by the one-time liquidity calculation.

Creditors have until March 10, 2023, to decide whether to receive the proposed early lump sum or continue to wait for a potentially larger payment at an unspecified future date.

Mt.Gox, once the largest cryptocurrency exchange in the world, was hacked in 2014. Hackers stole 850,000 bitcoins, worth $460 million at the time. The remaining balance of Mt.Gox is about 142,000 bitcoins, 143,000 bitcoin cash (BCH), and 69 billion japan yen.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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