The Mt Gox saga continues as the Mt Gox Investment Fund announces its decision to hold on to the Bitcoins that are set to be returned later this year. The fund has purchased claims against the now-defunct cryptocurrency trading platform and opted to receive an early payout in September instead of waiting for the conclusion of all legal proceedings related to the downfall of the exchange.
Early Payout of 90% in Bitcoin and Cash
According to a report by Bloomberg, the payout will constitute 90% of the total collectible amount, with approximately 70% of it being in Bitcoin and 30% in cash. However, the exact quantity of Bitcoin that the fund anticipates receiving has not been revealed. The decision to hold on to the recovered Bitcoins is significant since the bankruptcy trustee is expected to repay the creditors with Bitcoin as well.
Unlikely to Impact Bitcoin Price
UBS strategists have stated that the upcoming Mt. Gox bankruptcy repayments are unlikely to impact the price of Bitcoin. According to the strategists, the impact on the market of the repayments is difficult to predict, and it is unlikely that most of them will reach the market due to most early adopters still being crypto believers. The creditors are set to receive funds in September, with the option of choosing fiat or crypto payments.
Deadline for Creditors’ Payment Preferences Extended
The cutoff date for rehabilitation creditors to register their payment preferences has been postponed. The new deadline for selection and registration is March 10, which gives more time for the creditors to complete the process. The extension was granted after the trustee received requests from several creditors who needed more time to register their payment preferences.
Mt. Gox Rehabilitation Plan Under Development for Multiple Years
Mt. Gox, the bankrupt cryptocurrency exchange, has been working on its rehabilitation plan for several years now. The exchange went bankrupt in 2014 after it was hacked and 850,000 Bitcoins were stolen. Mark Karpeles, the exchange’s former CEO, was later sentenced to two and a half years in prison for embezzlement and falsifying data.
The news that the Mt Gox Investment Fund plans to keep the recovered Bitcoins is a reminder that the legal and financial issues surrounding the exchange’s downfall are still ongoing. The recent extension of the deadline for creditors to register their payment preferences suggests that the bankruptcy proceedings may continue for some time. It’s uncertain what impact the repayments will have on the cryptocurrency market, but it’s clear that the Mt Gox story is not over yet.
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