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Repayments Begin for Mt. Gox Customers after Nearly a Decade
After almost ten years, customers of Mt. Gox will finally start receiving repayments, marking a significant milestone in the aftermath of the historic cryptocurrency exchange’s collapse.
After an almost 10-year wait, Mt. Gox has initiated repayments to its customers, marking the end of a long journey for some users to retrieve their cryptocurrency assets. The now-defunct crypto exchange, which was once a dominant player in the industry, facilitated more than 70% of all bitcoin (BTC) transactions during its early operations.
The downfall of Mt. Gox came in the aftermath of a major hack in 2014, which resulted in the loss of approximately 740,000 bitcoins. This incident led to the exchange declaring bankruptcy, leaving many users in limbo for years.
The recent announcement of the repayments by Mt. Gox sparked a sell-off in the cryptocurrency market. The exchange had previously revealed its plans to initiate repayments in July, leading to a drop in bitcoin prices. On the day of the announcement, bitcoin plummeted to $54,000, reaching its lowest level in five months. The sharp decline triggered the liquidation of over $580 million worth of bullish positions.
UPDATE (July 5, 06:40 UTC): Additional information and market context have been included in the article for further insight.