Tech
Bitcoin Windfall Awaits Mt. Gox Creditors After Decade-Long Wait
Mt. Gox, the once-dominant Japanese bitcoin exchange that collapsed in 2014, is set to repay creditors, who stand to gain significantly due to the cryptocurrency’s dramatic increase in value. Following the loss of up to 950,000 bitcoins in a 2011 hack, about 140,000 bitcoins were recovered. At current prices, this amounts to approximately $9 billion.
One creditor, Gregory Greene, could see his holdings, originally valued at $25,000 when bitcoin was around $600, potentially worth about $2.5 million today. Payouts, set to begin in July, will be a mix of bitcoin and bitcoin cash.
Mt. Gox was known for handling around 80% of global bitcoin trades before its closure. Many creditors plan to keep their payouts in cryptocurrency, reflecting their long-term belief in bitcoin’s value. Despite some possible market impact from sales, factors like tax considerations might lead creditors to hold their bitcoin or use it as collateral instead of selling.