Bitcoin

This is Why October Might See a Huge Bitcoin Sell-Off

The trustee overseeing the bankruptcy proceedings of the defunct crypto exchange Mt. Gox has reportedly taken a significant step forward in facilitating Bitcoin repayments.

Several users of the social media platform Reddit reported that Mt. Gox’s official website was amended to include crypto payment options.

Mt. Gox’s Bitcoin Payout

The recent update has sparked mixed reactions among creditors. While some remain skeptical, others speculate that the crypto exchange might initiate repayments sooner than expected, potentially concluding before October 31, 2024.

The repayment plan entails distributing 142,000 Bitcoin (BTC), 143,000 Bitcoin Cash (BCH), and 69 billion Yen to creditors.

If the repayment plan proceeds as anticipated, industry analysts anticipate significant selling pressure in October as creditors liquidate their assets. This anticipation stems from the prolonged wait of Mt. Gox’s creditors, spanning nearly a decade since the exchange’s collapse.

Notably, progress on the repayment front has been observed, particularly with bank account reimbursements. Reports emerged in late December 2023 regarding the first Mt. Gox repayments, with some creditors even receiving double payments.

Mt. Gox Bitcoin Balance. Source: Glassnode

In 2014, a massive hack targeted Mt. Gox, once a trailblazer in the crypto industry. This resulted in the loss of 850,000 Bitcoin, which now holds a value exceeding $57 billion. Following the hack, Mt. Gox filed for bankruptcy protection and initiated rehabilitation proceedings in 2018 to compensate affected creditors.

However, delays and uncertainties plagued the process due to legal disputes and other setbacks, leaving users in limbo regarding the return of their funds.

Meanwhile, the repayment development follows a warning issued by Mt. Gox to creditors regarding potential fraudulent emails. According to the team, the emails, purportedly from the Rehabilitation Trustee, falsely advanced the repayment deadline to March 29, 2023, and urged recipients to click on a malicious link to verify their identity.

Read more: 15 Most Common Crypto Scams To Look Out For

Consequently, MT. Gox swiftly clarified that these emails were fraudulent and not from its team.

“This email is a fraudulent email impersonating the MTGOX team. The fraudulent email was not sent by the Rehabilitation Trustee, and the information in the fraudulent email is completely false. Accordingly, please disregard the instructions and requests in the fraudulent email,” the firm added.

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