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Over a decade ago, Mt. Gox, once the largest Bitcoin exchange handling over 70% of the world’s transactions, collapsed after losing up to 850,000 BTC in hacks. Since then, creditors, many of whom were early Bitcoin adopters, have been waiting for compensation. Finally, after years of delays, about 142,000 BTC has been recovered and is set to be distributed to creditors soon.
While this won’t fully reimburse victims, the current value of Bitcoin compared to a decade ago means they will still see a return on their investment. Additionally, they will also receive a portion of Bitcoin Cash due to a hard fork in 2017. However, some analysts are concerned about the impact of this distribution on the market.
Recent reports suggest that the release of this large amount of BTC could lead to increased selling pressure as creditors may choose to sell their crypto for fiat currency. Despite this, the Mt. Gox Investment Fund, the largest creditor, has stated that they do not plan to sell the Bitcoin they receive immediately.
There is also the logistical aspect of the payout process to consider. Transactions may not all happen at once, and some customers have already received their initial cash payments faster than others. With Bitcoin’s daily trading volumes consistently above $10 billion, the market is expected to handle any potential selling pressure.
A poll on the Mt. Gox subreddit revealed that a significant number of creditors plan to hold onto their digital assets rather than sell them. This sentiment is echoed by many who have held onto their Bitcoin for years and see it as a long-term investment.
While Mt. Gox remains one of the biggest crypto heists in history, the industry has seen similar incidents since then. The recent collapse of FTX left over 100,000 creditors awaiting compensation. However, the increase in crypto valuations means they may receive more than their initial claim amount.
As the saga of Mt. Gox draws to a close, it serves as a reminder of the risks and challenges in the crypto industry. While some may choose to cash out their investments, others remain committed to holding onto their digital assets for the long haul.
