Mt. Gox Repayment Will Continue to Refund Hacked Assets Through Bitstamp

Key Points:

• Mt. Gox repayments through Bitstamp will begin on Thursday.
• The exchange has moved 32,371 BTC on July 24 and plans to distribute 140,000 BTC in total.
• The large Bitcoin distribution could cause volatility, but institutional buying may stabilize prices.

Former users of defunct Mt. Gox crypto exchange will finally get reimbursed for lost funds beginning Thursday, a full decade since the platform fell victim to a major hack.

Read more: Mt. Gox Bitcoin Repayments Likely Disabling Half Inflows into Bitcoin ETFs 

Massive Bitcoin Transfers as Mt. Gox Distributes $5.3 Billion

The recent Mt. Gox repayments would be in Bitcoin, Bitcoin Cash, and Ether, according to Bitstamp, appointed for the process of disbursement.

However, this Mt. Gox repayment phase will not include U.K. customers. It comes at the right time, as yesterday there had been a huge outflow of funds from Mt. Gox wallets in which 32,371 BTC was transferred to an unknown wallet for about $2.13 billion. All in all, Mt. Gox has moved 140,000 BTC to new wallets awaiting distribution at approximately $5.3 billion.

One more significant crypto exchange, Kraken, has joined in the Mt. Gox repayment for creditors. It received 48,641 BTC from the Mt. Gox Rehabilitation Trustee. Mt. Gox has transferred 10,216 BTC to Bitstamp so far and is now holding the remaining 80,128 BTC.

Market Volatility Expected with Mt. Gox Bitcoin Repayment

The large scale of their distribution has brought worries about the volatility in the market. Investors are scared of the potential deluge of Bitcoin into the market, which may result in extreme variations in price, considering the massive rise in Bitcoin’s value compared to its price at the time of the hack.

Even though the concerns seem high, several industry experts are optimistic about Bitcoin’s future. According to these optimists, institutional investors will jump into the markets in an attempt to buy the assets directly from the creditors, thereby most probably stabilizing or boosting the Bitcoin prices with more capital inflow.