the outcome of the Mt.Gox case is imminent


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The Mt.Gox disaster is finally coming to an end, more than nine years later. Investors are finally preparing to get back some of the missing bitcoins.

In February 2014, Mt.Gox, one of the major cryptocurrency exchanges, was hit by a computer attack. At the end of the operation, the pirates flew away 850,000 bitcoins. At that time, Bitcoin’s price had just crossed the $1,000 mark for the first time. Several hundred million dollars have disappeared from the platform founded by the French Mark Karpelesor 80% of the money deposited by investors.

In the aftermath of the hack, the Japan-based exchange went bankrupt. The Japanese authorities have seized the case. Under the supervision of the authorities, the Japanese company has made every effort to recover as much money as possible to reimburse its users. It was clear that most of the assets were gone forever…

After an endless legal procedure, riddled with pitfalls, the platform was able to join forces 20% of gobbled up cryptocurrencies at the disaster. In detail, Japanese courts seized 142,000 bitcoins, 143,000 cash bitcoins, and 69 billion Japanese yen, or about $505,000. As our colleagues at The Block point out, the exact amount is not yet clearly defined.

These digital currencies will eventually be returned to duped investors more than nine years after the hack. Courts planned to initiate prepayments from March 10, 2023. Unless there is a delay, payments must end during the month of September. At the end of the process, all victims who made the request should receive, at best, 20% of their losses.

Also read: Will the victims of the FTX fiasco really get their cryptocurrencies back?
What impact on the price of Bitcoin?

For years, the cryptocurrency market feared the outcome of the Mt.Gox affair. Investors fear that the Japanese liquidators will massively resell all found bitcoins to obtain cash and honorable refunds. This hypothetical sell-through would risk bringing Bitcoin’s price down by creating an imbalance between supply and demand.

Ultimately, according to UBS bank analysts, the price of Bitcoin should not suffer from the epilogue of the Mt.Gox disaster. Two of Mount Gox’s largest creditorsIndeed, the former Bitcoinica platform and the MtGox Investment Funds (MGIF), have opted for a prepayment consisting of fiat currencies and Bitcoin.

In detail, 90% of the claimed money will be recovered in Bitcoin. These two entities are concentrating 20% of receivables payable by the exchange. Thus, to make the repayments, a trustee will not be required to sell a large portion of the bitcoins recovered from Mt.Gox’s treasury.

“Some bitcoins can still be resold in the market, but this should be much less concentrated than expected”explains UBS, quelling rumors of a massive sale that would be catastrophic for this still-fragile market.
Mt.Gox victims have until March 10, when prepayments begin, to choose their repayment terms. As CoinDesk reports, it is highly likely that a large portion of other creditors, including individuals, will also opt for it receive their compensation in the form of bitcoins. Indeed, the colossal evolution of the price of cryptocurrency, which reached almost $70,000 at the end of 2021, argues in favor of this decision. Ultimately, liquidators should not flood the market with bitcoins.

bitcoin course

The price of Bitcoin in February 2023, according to CoinMarketCap.

The conclusion to the Mt.Gox debacle comes as Bitcoin price gradually recovers. After last year’s setbacks, the queen of cryptocurrencies finally climbed around $25,000.

Source :

The block