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Bitcoin: Mt. Gox to Release 141,686 BTC and 69 Billion Yen – Will BTC Price Drop?

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  • Mt. Gox rehabilitation trustee sets October 31, 2023 deadline for Bitcoin repayments.
  • Creditors to receive 141,686 BTC, 143,000 BCH, and 69 billion yen, but the actual impact on the market is uncertain.

Nobuaki Kobayashi, the rehabilitation trustee for the now-defunct Mt. Gox exchange, released an update today regarding the repayment process for the recovered Bitcoin. According to the letter, the deadline for creditors to submit their repayment details was April 6, 2023.

Bitcoin Repayments Expected by October 31, 2023

After numerous delays, the repayment process is finally moving forward, with repayments anticipated to begin by October 31, 2023. Kobayashi is currently preparing for the repayments by contacting banks, money transfer providers, and cryptocurrency exchanges to discuss arrangements for the process.

Repayment Timeline and Potential Market Impact

The base, interim, and early lump sum repayments are set for October 21, 2023, but the exact timing for individual creditors remains undetermined. Additionally, with the approval of the Tokyo District Court, the repayment deadline may be extended if necessary.

Bitstamp, a Luxembourg-based crypto exchange, is among the four exchanges chosen by the Mt. Gox trustee to assist with the repayments. In recent weeks, Bitstamp has published guidance for creditors on submitting their claims.

The rehabilitation plan will reimburse victims with 141,686 BTC, around 143,000 BCH, and 69 billion yen. However, the exact amount of the refunds remains uncertain, as creditors had the option to receive their claims in either cryptocurrencies or fiat until the deadline.

It is difficult to predict the actual amount of Bitcoin that may create selling pressure in the market. The trustee will not dump all the Bitcoin at once but will spread it out until the end of October. The two largest creditors, Bitcoinica and Mt. Gox Investment Funds, have chosen to receive their bankruptcy funds in Bitcoin, representing an estimated 20% of all claims.

Despite concerns about a potential Bitcoin price crash due to the Mt. Gox payouts, such an event appears unlikely as the market is currently able to absorb low volumes in spite of historically low liquidity. At the time of writing, the BTC price stood at $27,921.

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Godfrey Benjamin
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose primary goal is to educate everyone about the prospects of Web 3.0. His love for crypto was sparked during his time as a former banker when he recognized the clear advantages of decentralized money over traditional payments. Business Email: info@ethnews.com Phone: +49 160 92211628