**Breaking: Mt Gox Commences Bitcoin and Bitcoin Cash Repayments**
By Tanzeel Akhtar
Updated: July 5, 2024, 03:24 EDT
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1 min read
The infamous Japanese Bitcoin exchange, Mt. Gox, which collapsed in 2014, has begun issuing repayments to its creditors in Bitcoin and Bitcoin Cash. Earlier today, the exchange announced on its website that it had initiated payments to “some” creditors, noting that others would “need to wait a while.” This post has since been removed.
According to the statement, Mt. Gox is making these payments via designated cryptocurrency exchanges in accordance with the rehabilitation plan. “Repayments to other rehabilitation creditors will be promptly made once certain conditions are met. We ask eligible rehabilitation creditors to wait for a while,” Mt. Gox stated on Friday.
### Mt. Gox Collapse and Its Aftermath
The repayment process comes a decade after the exchange’s collapse, which led to extensive legal battles and asset recovery efforts. In 2018, about 200,000 Bitcoins were recovered, sparking a lengthy rehabilitation process overseen by a court-appointed trustee. Creditors have faced numerous delays, causing much frustration.
This new distribution phase aims to compensate users who lost funds in the collapse. The crypto community is closely monitoring the repayment plan’s specifics, including the asset distribution proportion and the completion timeline.
On Thursday, Mt. Gox transferred $2.7 billion worth of Bitcoin to a new wallet address. This marks the exchange’s first significant transaction since May, following smaller test transactions conducted on Wednesday.
### Bitcoin Price Drops to $54k
Despite the positive news of repayments, Bitcoin’s price has fallen to around $54,300, a 7% decrease in the last 24 hours. Analysts at K33 Research caution that reintroducing such a large amount of Bitcoin into the market could lead to price instability and downward pressure on Bitcoin’s value.
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