Mt. Gox’s Largest Creditors Choose Bitcoin for Claims

02/17/2023 19:59 • Blockchain Buzz • 139 views

According to reports, according to people familiar with the matter, the two largest creditors of Mt. Gox, a crypto exchange that collapsed nine years ago due to hacker attacks, have chosen to collect their claims mainly in Bitcoin (BTC). Bitcoinica and MtGox Investment Funds (MGIF), the cryptocurrency exchange headquartered in New Zealand, together account for about one fifth of the total claims of Mt. Gox, and will receive 90% of the recoverable funds. This decision may alleviate the long-term concern of Bitcoin holders that the liquidation related to the bankruptcy claim of Mt. Gox may put pressure on the price of Bitcoin, because if these two creditors choose to pay in legal currency, the trustee supervising the bankruptcy property may be forced to sell most of Bitcoin recovered by Mt. Gox to meet the payment requirements in legal currency.

Sources: The two largest creditors of Mt.Gox choose to collect their claims mainly in Bitcoin

Interpret the above information:

Reports suggest that the two largest creditors of Mt. Gox, the now-defunct crypto exchange, have decided to collect their claims mainly in Bitcoin. Bitcoinica and MtGox Investment Funds (MGIF) together make up about one-fifth of Mt. Gox’s total claims and will receive 90% of the recoverable funds. This decision is significant as it could reduce concerns among long-term Bitcoin holders that the liquidation related to Mt. Gox’s bankruptcy claim may put pressure on the cryptocurrency’s price.

Mt. Gox was a popular crypto exchange that faced a significant setback in 2014 due to hacker attacks. The event led to millions of dollars’ worth of user funds disappearing, leading to Mt. Gox filing for bankruptcy. As a result, the exchange owed its creditors large amounts of money.

Now, nearly a decade later, the creditors of Mt. Gox are getting closer to receiving their rightful payments. However, there has been a lingering concern surrounding what the creditors would choose as their preferred currency to receive their funds. With Bitcoinica and MGIF choosing Bitcoin, this clears up a significant point of contention for many Bitcoin investors.

If the creditors had chosen to receive their payments in legal currency, the trustee responsible for supervising the bankruptcy property might have sold a considerable amount of the Bitcoin recovered by Mt. Gox. If this had happened, it would have created more downward pressure on the Bitcoin price.

Many experts believe that the decision made by Bitcoinica and MGIF will have a positive impact on Bitcoin’s price. However, it is essential to note that Bitcoin’s price is notorious for being volatile and can fluctuate dramatically due to various other factors.

In conclusion, the latest decision made by the two largest creditors of Mt. Gox to collect their claims mainly in Bitcoin is a significant development for the cryptocurrency market. Investors can take it as a doable option for debt settlement in the future, and Bitcoin holders can remain confident that the ripple effects of Mt. Gox’s collapse may not adversely affect the crypto’s price in the future.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/1040.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.