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Mt. Gox Repayments Now Completed for Over 17,000 Creditors

Key Points:

Mt. Gox completed cryptocurrency repayments to some creditors on July 31, 2024, with Bitcoin and Bitcoin Cash.
Mt. Gox repayments, geopolitical tension, and concerns over the Federal Reserve keep Bitcoin prices volatile.

On July 31, 2024, Mt. Gox’s Rehabilitation Trustee, Nobuaki Kobayashi, announced that the exchange had finished repayments to part of the creditors by returning Bitcoin and Bitcoin Cash through exchanges such as Kraken and Bitstamp.

Mt. Gox Repayments Done for over 17,000 Creditors

The move follows Mt. Gox repayments on 5, 16, and 24 July 2024. To this end, over 17,000 creditors have settled their part of the $8.6 billion digital currency debt since the bankruptcy a decade ago, caused by one of the most significant hacks.

Distributions are being handled by Kraken and Bitstamp, with the former dealing with Bitcoin and Bitcoin Cash, while the latter adds Ether token returnees. The exact amount is not given, but recipients of the return are expected to gain full control of their assets within a week.

Returned major assets are affecting the cryptocurrency market in terms of high volatility. Among the several factors that introduced uncertainty into the market were the chances of selling the received tokens by creditors. This has been further augmented by the recent news of selling Bitcoin seized during regulatory actions in Germany.

Geopolitical and Economic Factors Push Bitcoin’s Price Volatile

Mt. Gox repayments have greatly influenced the prices of Bitcoin, leading to a drop to $53,600 in mid-July, a five-month low. While the rebounds from this were encouraging, Bitcoin encountered strong resistance at $70,000, which slid back down to about $64,000 by the end of July.

On August 1, 2024, Bitcoin’s price kept sliding as tensions between Iran and the West rose and US Federal Reserve Chair Jerome Powell dampened hopes of any rate cut. As per the latest reports, Bitcoin is trading at around $64,000, down about 3% over the past 24 hours.

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.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.