The top Mt. Gox creditor chose to have an early payout in BTC
Luisa Crawford Feb 19, 2023 03:01
Mt. Gox creditors may be paid more, but it may take nine years to finalize the bankruptcy procedure.
The largest creditor to Mt. Gox made the decision to get their payment in Bitcoin (BTC) sooner rather than later, passing up the opportunity to receive an even higher sum.
According to reports, the largest creditor of the now-defunct cryptocurrency exchange, Mt. Gox Investment Fund, made the decision to take its chances with a smaller but earlier payout rather than waiting for all of the legal processes to be resolved. This move allowed the fund to receive its money sooner. This results in the creditor being paid by September of this year as opposed to having to wait for their money possibly for another nine years.
Bloomberg reports that choosing the early payout will result in the creditor receiving 90% of what is owing to them. Additionally, the bankruptcy trustee will not be required to sell tokens in order to obtain fiat monies for the payment since the creditor opted to be paid in BTC. Concerns in the market will be alleviated as a result of this news since token sales of that scale have the potential to have a detrimental effect on the cryptocurrency market.
Other creditors of the exchange have until March 10 to determine whether or not they wish to accept the early payback in September and wait for a greater payment percentage.
The trustee for Mt. Gox, Nobuaki Kobayashi, issued a call to action to creditors on January 6 to complete the required actions before the deadline. Kobayashi said in his writing that creditors who did not comply with this requirement would either be unable to get their monies or would be required to produce documentation to the headquarters in Japan in order to obtain payments in Japanese yen.
Mt. Gox was formerly the biggest cryptocurrency exchange in the world, but it went out of business in 2014 when hackers made off with 750,000 bitcoins belonging to the company's customers and 100,000 bitcoins belonging to the company itself. At the time of the event, the total value of the money was only around 473 million dollars. On the other hand, taking into account the state of the market now, its value is around $20 billion.
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