Creditors of the collapsed crypto exchange Mt. Gox might have to wait as long as three months to receive their repayments in Bitcoin (BTC). The trustee has begun remitting funds with different timelines for different exchanges. All three exchanges, Kraken, Bitstamp, and BitGo, have different repayment processing periods.
Varied Timelines Set for Mt. Gox Repayments
The repayment schedules of Mt. Gox creditors will vary depending on their chosen exchange. Payouts have been given 90 days to be processed in the Kraken exchange. However, Bitstamp is anticipated to take 30 to 60 days. In the case of BitGo, the payouts will be visible within 20 days. Also, SBI VC Trade and Bitbank will process payouts within 14 days. This information is obtained from a trustee document that explains the repayment schedule.
The trustee pointed out that each exchange has to transfer the BTC/BCH to the creditors’ credit balances at the mentioned time. That implies creditors must check their accounts according to the chosen exchange’s time schedule. The trustee’s statement offers some comfort that repayments will be made “as soon as possible.”
In the same way, for the repayments to be made on time, creditors must fulfill some conditions. These are among the ways in which the legitimacy of the registered accounts is verified. Also, the intention to subscribe to an agreement by designated crypto exchanges has to be acknowledged by creditors. The discussions with the trustee must also be finished. Repayments will be made as soon as these conditions are met and there is no delay in the process.
The trustee has transferred 47,228.7 BTC of roughly $2.71 billion to a wallet for further dispersal. This action shows the trustee’s willingness to adhere to the rehabilitation plan. The transfer also consists of sending 1,545 BTC to Bitbank to demonstrate the process.
Bitcoin Holds Strong Amidst Mt. Gox Payouts
Bitcoin fell to $53,900 after the repayment announcement. The biggest cryptocurrency is now worth $54,270, a 24-hour decline of 6.48%. In the past 24 hours, over $665 million has been liquidated across all centralized exchanges. Nevertheless, as mentioned before, professionals in the sphere still believe in Bitcoin’s future.
WazirX’s CEO, Nischal Shetty, replied to the market concerns, saying that the effect of the ban may not be as harsh as expected. He also added that repayments in BTC and BCH will not lead to a dump by a single entity, as they would be spread out. Shetty pointed out that the recipients are most probably Bitcoin OGs who may cash out some but will not dump the coins.
This is because the repayment of about 142,000 BTC and 143,000 BCH to about 127,000 creditors is considerable. Therefore, the value of these assets may make many recipients more inclined to keep them instead of selling them right away. According to Shetty, the Bitcoin that the creditors have is worth more, having acquired it after the Mt. Gox hack in 2014. This increase makes them more likely to hold the assets in the long run.
Also, the rehabilitation plan safeguards creditors’ timely receipt of assets. The trustee’s action of transferring large amounts of BTC to designated exchanges shows a strategy intended to minimize the adverse effects on the market.
Disclaimer: The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
