As a result of the biggest creditor’s decision to get an early payoff in Bitcoin rather than in fiat money during the protracted bankruptcy process of the cryptocurrency exchange Mt. Gox, some fears over the token’s price outlook might have been alleviated.
According to a source familiar with the subject who requested not to be named because the information is confidential, the Mt Gox Investment Fund reportedly selected an early distribution in the month of September of this year.
The individual further asserts that the fund made the decision not to wait for all of the litigation surrounding the unsuccessful exchange to be settled, which the person indicated might take as long as nine years.
The sales could have lowered the price of Bitcoin
According to what the guy claimed, the fund would get 90% of what may be collected. As the creditor opted to be paid in Bitcoin, the trustee in charge of the bankruptcy won’t be required to sell any tokens on the open market. It’s possible that these sales lowered the price of Bitcoin.
Creditors of Mt. Gox have until March 10 to make their decision over whether or not to take the payoff in September or to wait longer in order to collect a better percentage of their claims as per the recent development. Tokyo-based At one point in history, Mt. Gox dominated the cryptocurrency trading market. It went insolvent in 2014 after suffering losses from a number of client assets.
According to paperwork from before September 2019, the trustee in charge of the bankruptcy owned a treasure trove consisting of 141,686 Bitcoin in addition to cash and Bitcoin Cash coins. Given the prices that are now being offered, Bitcoin is worth around $3.4 billion.
