Mt.Gox released more updates on the creditor rehabilitation plan and the exchange could start repaying the creditors in August with some being compensated in Bitcoin so let’s have a closer look at our latest Bitcoin news.
The failer exchange Mt.Gox released more updates on the repayment procedures with its new creditor rehabilitation plan. The exchange stated that the Rehabilitation Trustee Nobuaki Kobayashi is preparing to make repayments in line with the new plan. Kobayashi published a report related to both repayment procedures and the performance of duties as a trustee. The document shows various choices for the creditors to make when receiving their payments. They could receive lump-sum payments and a portion of the claims in the form of BTC or bitcoin Cash.
Kobayashi set a Restriction Reference Period until all or part of the repayments made as an initial repayment is completed. This means that a chunk of BTC could start to hit the markets as Mt.Gox starts repaying the creditors in a month. The trustee won’t accept more applications for claims transfers at this time until the initial round of the repayments is done. Mt.Gox issued an email on the matter and spurred anticipation from the crypto community while some think that the repayment can contribute to downward pressure on BTC amid the bear market.
When the rehabilitation deal was finalized, the crypto proponents doubted that the repayments can impact Bitcoin’s price severely. CryptoQuant CEO Ki-Young Ju shared a tool that can help people set an alert for when the BTC starts leaving the exchange to a public blockchain wallet. The exchange’s former CEO even issued an NFT series that was free for the customers hoping that the tokens will provide holders access to UnGOX services and will provide ratings of exchanges and security levels.
As recently reported, Former CEO Mark Karpeles disclosed that MT.GOX wallet transferred coins and the exchange had about 200,000 BTC in possession during the company’s closure and the trustee sold 50,000 BTC for $600 million in the past. The cold wallet belonged to the infamous BTC exchange MT.GOX wallet transferred 6,800 BTC to an unknown wallet a few days after the former CEO revealed more plans to redistribute BTC worth $6 billion to the creditors
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