The creditor tweeted that the release of about 140,000 BTC would not occur immediately but in installments over months. People need to register their addresses in the system for the payment process to start.
Eric Wall, a Mt. Gox creditor, dismissed that the now-defunct exchange would soon dump about 140,000 BTC on the market. Instead, he said it would make the payments in installments over the coming months.
Wall explained that Mt. Gox would not distribute any coins this week, next week, or the week after.
It Would Take Mt. Gox Months to Refund Its Creditors
Wall added that some creditors had sold their rights to Fortress, but nobody knows when they will receive the refunds. Besides, they have not yet been able to register the addresses where Mt. Gox would send the crypto assets.
He said an upcoming notice would allow creditors to submit bank details to start the payment plan.
The misinformation on social media distressed the creditor, who told the community to block accounts saying Mt. Gox was making flyers. Others also mentioned the false information, highlighting that the repayment process would take the cryptocurrency exchange months.
Cryptocurrency influencer Danny Devan pointed out that the repayment process is just beginning and will last for months. Since he is bearish on selling a high amount of BTC, he expects the bearish market to be a mainstay for some time.
The Mt. Gox Incident Serves as a Warning to the Crypto Industry
The official document on the return procedure explains how Mt. Gox will handle the situation. Creditors may opt to receive an advance balloon payment instead of in installments.
The cryptocurrency exchange requests its creditors to register in the system as soon as possible. Concerning the release of the assets, the court document provides several details.
It states that the Rehabilitation Trustee plans to establish the Allocation Restriction Reference Period after discussions with the court under the Rehabilitation Plan. It indicates that it will happen by late August 2022 until all or part of the refunds is complete.
Many creditors felt relief when the court gave final approval to the payment plan in November 2021. The refund of the assets signals the end of a notorious episode in the crypto market history.
The Mt. Gox incident served as a warning to the cryptocurrency industry, matching the importance of the collapse of LUNA and its stablecoin UST.
Meanwhile, Bitcoin is trading at around USD 19,848 and has accumulated a 1.1% loss over the last 24 hours. While its daily trading volume is above USD 24.17 billion, its market capitalization is about USF 379.80 billion, according to CoinGecko.
By Alexander Salazar
