Mount Gox, a Bitcoin broker that went bankrupt in 2014, has started paying its former customers. While this is not the full value, Mount Gox holds approximately 141,000 bitcoins (R$27.6 billion), a number that could put even more pressure on the declining market.
The information is circulating on Reddit, where some users are sharing emails they received. While some screenshots show requests for more details about the payment, others shared the money landing in their bank accounts.
“I just got paid! I’m a three-figure lender living in Japan.”wrote one of them on the MtGoxInsolvency subreddit.
Payments on Mount Gox could put further pressure on Bitcoin
This Monday (22), sources cited that FTX would be behind a billion-dollar sale of Bitcoin, which would explain the market decline. Next Tuesday (23), Mount Gox can continue this selling pressure.
Before Mount Gox suffered a major hack and went bankrupt, it dominated 92% of the world’s Bitcoin trading volume. Bitcoin’s appreciation in recent years has allowed the broker to put in place a plan to offset some of its customers’ losses.
Although the process has been postponed several times, payments appear to be starting. Since their wallets still contain around 141,000 bitcoins, the news could cause panic in the market.
On social media, some users celebrated the progress of the trial. While some shared the deposits in their bank accounts, others pointed out that they are receiving instructions to complete the steps they are missing.
“Bank transfers received in US dollars confirmed on the Polish bitcoin forum. 2 transfers reported on January 18 (ING and Millennium banks)”one user commented on the testimony of a European.
While some payments are made in fiat currency, it’s worth noting that Mount Gox may sell some bitcoins to honor these transfers. Therefore, the payment method is virtually irrelevant to the rest of the market, which must follow the matter closely.
“My GOX profile has just been changed indicating that payment has started TODAY”wrote another.
“New email – Good to see exchange data verification happening”, wrote a third. In the comments, several others stated that they also received an email from Mt. Gox had received.
Finally, while it’s good news for those who have locked up their investments for a decade, it’s important to keep an eye on Bitcoin’s price. At the time of writing, BTC is trading below $39,000.
The Mount Gox case also serves as a warning to investors not to use brokers as if they were portfolios. After all, although they pay their former customers, the amount is nowhere near the total amount lost.
Others hoping for a refund are FTX customers, who hopefully won’t have to wait a decade and will get a larger share, close to the total amount they had with the broker on the date of the bankruptcy.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
