Mt Gox Creditor Refutes Bitcoin Dumping Rumours
Eric Wall, a creditor of Mt. Gox, confirmed that new reports swirling that 137,000 BTC sent to creditors would soon be dumped on the market are false. In a recent Twitter thread, Wall said the repayment system is not live yet.
While addressing the rumors floating around across social media channels, the former CIO at Oslo-based crypto investment firm Arcane Assets said the payouts will also occur in tranches over months instead of offloading thousands of BTC all at once, thereby triggering dumping concerns.
No Timeline for Repayment Confirmed
Currently, users are still not able to register where to send the Bitcoin and Bitcoin Cash payments. In addition to that, there are no official timelines on when to expect repayments. As per a note shared by Wall, the same is expected to be mentioned in an upcoming notice to the creditors by the trustee.
The repayments are also expected to be conducted through approved crypto exchanges, the names of which are yet to be released. The creditor also went on to add that even if the market was unfavorable at the moment, he would rather buy if any Bitcoins were released rather than sell.
The implosion of Mt. Gox dates back to almost a decade ago, when it abruptly terminated operations amid revelations of its involvement in the theft of hundreds of thousands of Bitcoins. What followed was a lengthy legal procedure.
Earlier this year, Nobuaki Kobayashi, the appointed rehabilitation trustee, revealed gearing up to facilitate repayments to creditors. The documentation on July 6 stated August end as a period of reference for initial repayment of funds.
“Following discussions with the Court and in accordance with the Rehabilitation Plan, the Rehabilitation Trustee plans to set the Assignment, etc. Restriction Reference Period from approximately the end of August this year until all or part of the repayments made as initial repayments is completed for safe and secure Repayments.”
FUD in the Market
The unconfirmed rumors that Mt. Gox funds were due for release to creditors this month exacerbated the already declining prices as extreme volatility seeped in. Bitcoin slumped below $20k yet again before recovering some ground above the psychological price level.
Many traders, including Josh Rager, believe that even if the entirety of BTC released was sold at once, the subsequent sell pressure is unlikely to culminate in a catastrophic event like expected.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.