Mt. Gox to Begin Repaying Creditors After Decade-long Wait: What to Expect Next

Mt. Gox Users Set to Finally Receive Payouts After a Decade of Waiting

After a decade of uncertainty and frustration, users of the collapsed bitcoin exchange Mt. Gox are finally set to receive their long-awaited payouts starting in July. The exchange, which went bankrupt in 2014 following a major hack that resulted in the loss of 950,000 bitcoins, will be repaying creditors with a windfall that could amount to roughly $9 billion at today’s prices.

Among the claimants eagerly awaiting their payouts is Gregory Greene, an Illinois native who filed a class action lawsuit against Mt. Gox and its former CEO after losing $25,000 worth of bitcoin in the hack. With the value of bitcoin skyrocketing from $600 to over $60,000 since the hack, Greene’s lost stash could now be worth around $2.5 million, representing a remarkable 10,000% gain.

The court-appointed trustee overseeing Mt. Gox’s bankruptcy proceedings announced that distributions to the firm’s roughly 20,000 creditors will begin next month, with payments being made in a mix of bitcoin and bitcoin cash. While some creditors may choose to cash out and enjoy their newfound wealth, others are expected to hold onto their assets, potentially impacting the cryptocurrency market.

Analysts predict that the influx of funds from Mt. Gox creditors could create short-term selling pressure on crypto prices in July, but prices are expected to rebound in the following months. Despite the potential for heavy selling, many creditors who have waited patiently for their payouts are likely to hold onto their assets, believing in the long-term potential of bitcoin.

With tax implications and potential future price gains in mind, many creditors are opting for in-kind reimbursement in cryptocurrency rather than fiat. Some may even use their bitcoin as collateral to borrow dollars, allowing them to monetize their assets without selling them and incurring a hefty capital gains tax.

As Mt. Gox users prepare to finally receive their payouts after years of waiting, the cryptocurrency market braces for potential fluctuations and the impact of this historic event.