CoinDesk Reports:
Trustees for the defunct cryptocurrency exchange Mt. Gox have announced that some creditors have received compensation in the form of digital assets.
In a recent statement, Mt. Gox trustee Nobuaki Kobayashi revealed that as part of the company’s rehabilitation plan, certain creditors of Mt. Gox have been reimbursed with Bitcoin (BTC) and Bitcoin Cash (BCH).
However, Kobayashi noted that not all creditors have reached settlements yet, and others will be accommodated once specific conditions are met.
“On July 5, 24, in accordance with the rehabilitation plan, the rehabilitation trustee paid compensation in Bitcoin and Bitcoin Cash to some rehabilitation creditors, such as through designated cryptocurrency exchanges.
Repayment to other rehabilitation creditors will be made promptly upon satisfying the following conditions:
(i) Confirmation of the validity of registered accounts and other matters;
(ii) Expression of intention to subscribe to the Proxy Receipt Agreement through designated cryptocurrency exchanges, etc.;
(iii) Completion of discussions between the rehabilitation trustee and designated cryptocurrency exchanges regarding repayment; and
(iv) Confirmation that repayment can be conducted safely and reliably. We ask rehabilitation creditors who meet these conditions to wait for a certain period of time.”
Mt. Gox was once the world’s largest BTC exchange in the early 2010s but later filed for bankruptcy and lost a significant amount of tokens due to theft.
Earlier this month, cryptocurrency asset management firm CoinShares released a report stating that most Mt. Gox creditors likely hold their BTC, which they may sell, potentially spreading out across numerous cryptocurrency exchanges to mitigate the downward price pressure caused by large-scale simultaneous sales.
“Distributions will occur on different dates throughout the month across multiple exchanges (Bitstamp, Kraken, Bitbank, BitGo, SBI VC Trade, and others), reducing the likelihood of large-scale concurrent sales.”
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Feature Image: Shutterstock/Natalia Siiatovskaia