Mt. Gox Creditors Will Soon Claim $4.9 Billion in Bitcoin
- Mt. Gox investors will soon be able to claim funds stolen in 2014.
- Some are concerned that the claims could flood the market with newly-circulating Bitcoin and affect crypto prices.
- No date has been announced for the payout.
Former Mt. Gox investors will soon be compensated for stolen Bitcoin. However, some are concerned that an influx of newly-circulating BTC into the market could impact prices.
Mt. Gox was shut down in February 2014 after a major security breach caused the loss of 850,000 BTC.
Mt. Gox creditors have agreed to pay CoinLab 90% of lost funds after a legal battle spanning several years. 137,891 BTC worth $4.9 billion is expected to be distributed through the firm.
The distribution date for the Bitcoin is not yet decided. However, creditors have been waiting for over six years to receive their funds. Many creditors will likely cash out immediately upon receiving their funds, and this could easily create strong selling pressure in the market.
CoinLab signed on to handle North American transactions for Mt. Gox in 2012 before suing the exchange the following year for breach of contract. The civil rehabilitation process against Mt. Gox was delayed when CoinLab increased its claim from $75 million to $16 billion.
Mt. Gox victims can register to receive lost BTC here.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Source: Read Full Article