Creditors of Mt. Gox will soon receive over $9 billion in compensation. The plan was approved by creditors earlier this week, but it remains unclear whether the payments will be made in bitcoin or fiat currency. While there is hope for the future of the industry, there is also a lot of uncertainty. One of the major concerns about the settlement is the lack of transparency. However, Daniel is optimistic that the process will soon be concluded.
The price of bitcoin has fallen over 20% since the day after Mt. Gox filed for bankruptcy. The missing bitcoins were valued at $450 million, which was nearly 6% of the total bitcoin in circulation. The news of the suspension caused the price of bitcoin to plummet by 20%. While Mt.Gox has not disclosed how much it paid out to its customers, it has made several attempts to avoid paying out to its clients.
The Chinese government is increasingly cracking down on crypto-related businesses and warned state-owned enterprises to stop mining. In 2014, the site was hacked and thousands of people lost their crypto holdings. The hack began the “not your keys, your coins” school of thought. Afterwards, the incident became legendary in the cryptocurrency space. However, it also helped to restore confidence in the system. Despite the difficulties that Mt. Gox has faced in the past, it has recently reopened its doors to its users.
The trustee in Mt. Gox’s bankruptcy presides over a trove of 141,686 bitcoins with a market value of over $8.3 billion that is at last nearing redistribution.
Fortress Investment Group and 507 Capital, which have spent years hoovering up unpaid Mt. Gox claims, stand to make huge profits.
So too do creditors of the crypto exchanges Bitcoinica and Bitcoin Builder, which used Mt. Gox as a custodian, thanks to massive growth in the price of bitcoin since the infamous hack.