Business
Mt. Gox to Begin Repayment of Stolen Assets in July 2024
Mt. Gox, the infamous cryptocurrency exchange, is set to initiate the repayment process for the stolen assets in July 2024, marking a significant step towards resolving the long-standing issue.
Delayed Repayment of Stolen Assets by Mt. Gox
Defunct bitcoin exchange Mt. Gox announced on Monday that it will begin distributing assets stolen from clients during a 2014 hack in the first week of July. The trustee, Nobuaki Kobayashi, stated that repayments in Bitcoin and Bitcoin Cash will commence in July 2024, after years of shifting deadlines.
Impact on Bitcoin Markets and Mt. Gox’s History
The impending repayments are expected to introduce selling pressure to bitcoin markets. Early investors who will receive assets acquired before 2013, when the value was much lower, may be inclined to sell a portion of their holdings, according to traders.
Mt. Gox, once the leading crypto exchange globally, managed over 70% of all bitcoin transactions in its early days. The 2014 hack, where hackers stole approximately 740,000 bitcoin (worth $15 billion at current prices), was a significant blow to the exchange, which had faced multiple attacks between 2010 and 2013.
The repayment plan, under development for several years, was granted a deadline of October 2024 by a Tokyo court last year. In a recent development, Mt. Gox transferred more than 140,000 BTC (about $9 billion) in 13 transactions from cold wallets to an undisclosed address, marking the first on-chain wallet movements in five years.
Following the announcement from Mt. Gox, bitcoin prices dipped from over $62,300 to under $62,100 in early Asian trading hours, as per CoinGecko data.