Victimized Investors Waited a Full 10 Years! A Nearly $9.5 Billion "Market Crash" Signal is Imminent, Bitcoin May Experience Severe Volatility

After suffering a hacking attack in 2014, the bankrupt cryptocurrency exchange Mt. Gox lost 850,000 bitcoins. After a 10-year wait, victimized investors finally received some good news as the exchange announced that it would pay 142,000 bitcoins (approximately $9.5 billion), 14,300 Bitcoin Cash (BCH), and 69 billion yen to its creditors by this October.

It is reported that creditors of Mt. Gox have recently updated their accounts with the media, which now include repayment status, amounts repaid, and outstanding amounts.

Source: Mt.Gox

A creditor on the well-known international forum Reddit updated his progress in a post, stating that he had received compensation. He wrote: "I was complaining in a post yesterday, and this morning I found that the payment had already been made. The remittance was received in my HSBC account in US dollars, seemingly with zero fees. The repayment schedule was updated on March 15th, again on April 8th, and it also showed the upcoming Bitcoin repayments on April 18th."

Source: Reddit

"Everyone hold on, your repayments will come too," he urged other victimized investors to remain patient.

According to the latest data released by Mt. Gox, the Bitcoin balance of the exchange's liquidation trustee's address is 137,890, and it is expected that by this October, Mt. Gox will pay a total of 142,000 bitcoins, 143,000 BCH, and 69 billion yen to its creditors.

Bitcoin investors are most concerned about whether such a large amount of Bitcoin repayments will cause selling pressure.

Market analysts believe that the compensation available to Mt. Gox creditors varies greatly in terms of cryptocurrency value, but with Bitcoin's value having increased more than tenfold over these 10 years, and currently near its all-time high, the repayment of over 140,000 bitcoins to investors may cause short-term market pressure, leading to fluctuations in Bitcoin prices.

Mt. Gox first appeared in 2010 and once handled nearly 75% of all Bitcoin transactions. However, the good times did not last long. In February 2014, the company lost 850,000 bitcoins in a hacking attack and subsequently declared bankruptcy, causing catastrophic losses for investors.

Since the bankruptcy, ongoing bankruptcy litigation has been seeking ways to compensate users affected by Mt. Gox's bankruptcy, but the bankruptcy trustees hope to compensate these users with the exchange's own bitcoins, rather than the equivalent value in fiat currency at the time.

This is why the entire incident has seen a 10-year wait for victimized investors, with slow progress in the compensation case.

It wasn’t until October 2022 that Mt. Gox announced the opening of creditor claim registrations, with 140,000 bitcoins awaiting repayment.

Mt. Gox's bankruptcy trustee then announced in November 2023 that they plan to start paying the first batch of cash compensations to creditors from 2023 and expect to continue payments into 2024.

In January this year, Mt. Gox announced it would begin unlocking bitcoins to repay creditors.