Mt. Gox’s Largest Creditor Plans To Keep Returned Bitcoin Despite Public Outcry

Key Points:

• Mt. Gox Investment Fund, the largest creditor of the failed Mt. Gox crypto exchange, will hold onto the Bitcoin it is due to receive in September instead of selling them, easing concerns about a large sell-off of tokens.
• The fund will receive 90% of what’s collectible, 70% in Bitcoin, and 30% in cash, with the amount of Bitcoin not yet specified.

The Mt. Gox Investment Fund, the largest creditor of the failed Mt. Gox crypto exchange, has reportedly decided to hold on to the Bitcoin due to be disbursed to them this year instead of selling them, as per Bloomberg.

The fund, which bought claims against the bankrupt exchange, will receive 90% of what’s collectible in a ratio of approximately 70% Bitcoin and 30% cash in a September payout. The fund has chosen the early payout instead of waiting for all the litigation over the collapsed exchange to be resolved. However, the amount of Bitcoin the fund expects to receive has not been specified.

The deadline for Mt. Gox creditors to choose between a September payout or waiting for a higher percentage of their claims is March 10. Mt. Gox, once the largest Bitcoin exchange based in Tokyo, lost customer assets and declared bankruptcy in 2014. The bankruptcy trustee held 141,686 Bitcoin and cash and Bitcoin Cash coins in September 2019, which is currently valued at approximately $3.1 billion.

Many crypto investors have long been concerned about the potential impact of selling large quantities of tokens as claims are resolved. Bitcoin has partially rebounded this year, but the revival appears to be stalling, with the digital asset currently priced about $47,000 off the record high of almost $69,000 set in 2021.

Given the significant value of the Bitcoin held by the bankruptcy trustee, it remains to be seen how other Mt. Gox creditors will respond to the September payout offer. Nevertheless, the decision by the Mt. Gox Investment Fund to hold on to its Bitcoin rather than sell it may help ease some concerns about the impact of large sell-offs on the crypto market.

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

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