Bitstamp will begin distributing crypto to Mt. Gox creditors on July 25 after receiving a large transfer of assets from the trustees of the collapsed exchange a day earlier.
The Mt. Gox trustees transferred 5,106 Bitcoin (BTC) directly to Bitstamp and 2,869 BTC to an unknown address, after which they underwent additional transfers before ending up in wallets associated with Bitstamp. Bitstamp also received Bitcoin Cash (BCH) and Ether (ETH) from the trustees.
It will take a week for recipients of the repayments to undergo security checks, after which they will have full control of their coins, the exchange said in a statement. Bitstamp customers based in the United Kingdom will not be included in the first round of repayments. They can expect to receive their repayments “within the next few months.”
Mt. Gox repayment may be worth the wait
The price of BTC has risen over 10,000% since the collapse of Mt. Gox in 2014, which left over 20,000 users without access to their crypto. Bitstamp noted:
“Those affected by the 2014 hacking operation have spent a decade waiting to be reimbursed, but now, with a lengthy bankruptcy process concluded, many will realise considerable profits.”
Bitstamp is one of five cryptocurrency exchanges taking part in the bankrupt exchange’s Rehabilitation Plan. Kraken announced on July 24 that it, too, had distributed the crypto it received from Mt. Gox to its creditors.
Mt. Gox repayment could shake up the market
Mt. Gox originally set a repayment date of October 2023 for creditors who registered claims but announced at the time that it had not been able to complete the processes necessary to begin repayment. Mt. Gox began shifting assets in May and indicated that the movement was part of its repayment efforts.
Related: Mt. Gox repayments will only cause Bitcoin sell pressure among ‘paper hands’ — Analyst
Analysts were concerned that the users recovering their assets could negatively impact the market with mass selloffs. So far, those concerns seem to be unfounded, according to polling.
Tokyo-based Mt. Gox operated from 2010 to 2014. It declared bankruptcy after discovering the theft of 850,000 BTC that had been gradually siphoned off from it.
Magazine: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis