Mt. Gox Reimbursements Can Crush Crypto Market
Main page News, Bitcoin, Crypto Market, Cryptocurrency
Hot topic
Sept. 17, 2018

Recall that earlier in August, Mt. Gox has launched a tool on its website, through which users can issue their claims for damages before October 22. A bankrupt platform should pay about 160,000 bitcoins, that is around $1 billion. Kim Nilsson, a former contributor of the bankrupt bitcoin (EXANTE: Bitcoin) exchange, believes that this can exacerbate the situation in the cryptocurrency market and bring down the value of assets, as well as worsen the already not-so-rosy situation in the crypto market.

Mt.Gox Former Clients Allowed to Return Funds

The Mt.Gox rehabilitation program was launched in August, and on September 14 it included corporate clients of the exchange. It is estimated that after hacking in 2014, about 844,400 bitcoins disappeared from the site, and later 750,000 of coins were recognized as irretrievably lost. During the investigation, some other 200,000 bitcoins were found on the accounts of the site and demanded that they are returned to the investors. The first payments began in March.

WHY IS IT IMPORTANT?

  • It is worth noting that the forecasts of the former depositor of the exchange have a basis. From December 2017 to February 2018 the head of the board of trustees of Mt. Gox Nobuaki Kobayashi sold Bitcoin and Bitcoin Cash (EXANTE: Bitcoin.Cash) for $400 million. Many analysts believe that this could affect the fall in the value of the cryptocurrencies.
  • In the end of June, Kobayashi said that he would no longer sell assets to compensate for the loss of the exchange's creditors. Then the Tokyo District Court approved the beginning of the rehabilitation of the platform.
  • As soon as investors get their tokens back, they are likely to immediately put them out for sale. This means that in the near future, approximately 160,000 BTC tokens will be re-released. This is what can cause a real crypto collapse.
Read also:
Please describe the error
Close