Mt. Gox to Reimburse $9B Worth of Assets to Users Amid BTC Price Drop

Defunct Bitcoin exchange Mt. Gox will commence Bitcoin (BTC) and Bitcoin Cash (BCH) repayment to users next month’s beginning. Details about the reimbursement were shared by the exchange’s trustee, Nobuaki Kobayashi, in a Monday notice. News about the incoming assets’ distribution comes when BTC and other cryptocurrencies are experiencing severe price drops.

Mt. Gox to Repay User From July

Founded in 2010, Mt. Gox rose to prominence as the leading Bitcoin exchange at the time. However, the company crashed in 2014 after a reported security exploit that saw 850,000 BTC exit the platform. After being defunct for nearly a decade, Mt. Gox revealed plans to reimburse users with 142,000 BTC and 143,000 BCH, alongside fiat currencies.

Since September 2023, the exchange’s trustee has commenced moves to repay Mt. Gox’s creditors. Last month, the exchange transported over $9.3 billion worth of BTC from its cold wallets into a Bitcoin wallet. Although this action sparked concerns among the Bitcoin community regarding a potential sell-off, the exchange’s trustee assured users that it was a step towards finalizing the repayment process, scheduled to conclude by October’s ending.

In the latest notice, Kobayashi noted that the Rehabilitation Trustee will comply with financial regulations applicable to countries where customers are based. The document added:

“We will commence the repayments in the order of the cryptocurrency exchanges with which the Rehabilitation Trustee will complete the exchange and confirmation of the required information.”

BTC Drops to $61K

It is currently unknown whether Mt. Gox will distribute large tranches of BTC to users simultaneously. However, if such happens, bitcoin’s value would likely experience a price dip.

Currently, the leading cryptocurrency is already facing price decreases. At the time of writing, BTC traded at $61,200, representing nearly a 5% price drop in the past 24 hours. The last time BTC dropped this low was in mid-May when it touched $60,000.

Source: CoinMarketCap