Mt Gox Set To Release 150,000 BTC Into The Markets, Here’s What Could Happen To Bitcoin’s Price.
A new document dated July 6 to victims of the sensational Mt Gox exploit has revealed that the now-defunct exchange might be ready to begin repayment processes.
“The Rehabilitation Trustee is currently preparing to make repayments (‘Repayments’) by the approved rehabilitation plan of which confirmation order of the Tokyo District Court (the ‘Court’) was made final and binding on November 16, 2021 (the “Rehabilitation Plan”),” read the letter signed by the Trustee in charge of the process Attorney Nobuaki Kobayashi.
Mt Gox once stood at the top of the crypto world as the largest Bitcoin exchange, processing 70% of all Bitcoin transactions. However, it all came crashing down in 2014 when the firm revealed that it had lost 850,000 BTC to hackers in what is considered the largest Bitcoin theft. It is worth noting that in October 2020, the firm announced that it had recovered 150,000 BTC from the loot.
According to the released document, the affected parties would be able to collect repayments in either cash, Bitcoin, or Bitcoin Cash. Consequently, it has led to concerns about increased selling pressure on Bitcoin.
It is worth noting that at the time of the exploit, Bitcoin was worth just about 2% of its current price. As such, speculators expect many victims to sell as soon as they receive payments.
While no specific date for the repayment has been set, pundits believe it could be terrible for Bitcoin. Notably, Bitcoin has already had a challenging year falling over 70% from the highs it formed in November.
The markets have remained risk-off over fears of economic shrinking as central banks struggle to rein in inflation. As things stand, there is already increased selling pressure as miners capitulate.
At the time of writing, Bitcoin is trading around the $21,600 price point. Notably, it had earlier claimed the $22k price point. It is currently 5.73% up in the last 24 hours and 12.81% up in the last week.