Victims of the Mt Gox cryptocurrency hack can finally get compensation for their lost Bitcoin. Nearly a decade after an attack forced the platform to shut down, users have begun a lengthy litigation process that could pay off in the coming months.
Related reading | Bitcoin Funding Rise As Price Struggle Continues
In the cryptocurrency space, people have been following the case due to its potential implications for the bitcoin market. In 2014, a bad actor managed to steal more than 850,000 BTC, and Mt Gox managed to recover about 150,000 BTC which could soon enter the market and contribute to the current bearish price movement.
At the time of writing, BTC is trading at $21,000 with a 4% gain in the last 24 hours. The cryptocurrency experienced relief for the first time in weeks after continued selling pressure pushed it to an annual low of around $17,000.
Market participants believe that the 150,000 BTC that has been unlocked from Mt. Gox will put more pressure on the market which looks ready to take more losses. According to a document posted by the Rehabilitation Guardian at Mt. Gox, the entity responsible for handling the compensation, they are making preparations to start the reimbursement.
This process was dictated and approved on November 15, 2021 by a Japanese court. In order to recover the money, the trustee asked the victims to provide the necessary information, such as names and addresses.
People will be able to choose their preferred payment method to get compensation. From cash to Bitcoin Cash and Bitcoin, the general consensus refers to most people who use BTC to collect their payout.
Rehabilitation Secretary made The following explanation:
The Rehabilitation Trustee may, if necessary to implement the rehabilitation plan and with the permission of the court, specify a period during which it is prohibited to waive, transfer, succeed, provide guarantees, or otherwise dispose of rehabilitation claims (…).
Can Bitcoin afford to open 150K BTC from Gox Mountain?
The repayment will begin sometime during the end of August 2022 and will expire “until all or part of the repayment is repaid when the initial repayment is completed.”
Mt.Gox victims, according to speculation by the crypto community, purchased BTC in 2014 which means that most of the recoverers will receive an average purchase price of around $300 per BTC. Even if someone gets 1 or 2 BTC, they will make a huge profit.
Thus, why are market participants talking about the possibility of a rapid crash or another downturn. CryptoQuant’s Ki-Young Ju provided users with an alert for BTC from Mt. Gox to start streaming away in the market.
MtGox has emailed creditors with payment information.
– Ki Young-ju (@ki_young_ju) 7 July 2022
Related reading | Bitcoin miners are inundated, but the price has held up so far
The cryptocurrency market looks weak as it has been trending lower since November 2021. However, current bitcoin levels, according to Bloomberg’s Mike McGlone, are similar to those that supported the BTC price during some of its darkest periods. Will history repeat with the opening of Mount Gox?