Bitcoin faces stress over defunct Mt. Gox repayments
Date
7/11/2024 8:14:51 AM
(MENAFN) The imminent repayments to victims of the infamous 2014 Mt. Gox cryptocurrency exchange hack are anticipated to influence the price of Bitcoin, according to experts cited by CNBC. Bitcoin, the largest cryptocurrency globally, recently experienced a significant decline to below USD60,000, marking one of its worst weekly downturns this year.
Scheduled to commence in early July, the bankrupt Mt. Gox exchange based in Tokyo will begin distributing stolen assets, including more than 140,000 Bitcoin valued at nearly USD9 billion. These assets will be disbursed to approximately 20,000 creditors in a combination of bitcoin and bitcoin cash, as outlined by the court-appointed trustee overseeing the exchange's bankruptcy proceedings.
Originally a dominant force in the crypto space, Mt. Gox handled a substantial portion of global Bitcoin transactions before shuttering in February 2014 following a massive cyber heist. The exchange fell victim to hackers who exploited a software vulnerability, resulting in the theft of hundreds of thousands of bitcoins.
As the repayments approach, analysts predict that Bitcoin markets may face increased selling pressure. Early investors, who will receive these assets acquired at lower prices, might be inclined to sell a portion of their holdings to capitalize on profits. This anticipated activity could potentially impact Bitcoin's price dynamics in the near term.
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