The crypto investment community over the weekend started a rumor that Mt. Gox is about to return 140,000 Bitcoin (BTC) to its creditors all at once.
What Is Mt. Gox?
MT. Gox was once a leading cryptocurrency exchange in the history of the cryptocurrency market. It handled up to 70% of the global Bitcoin trading volume in the past. In 2014, the exchange was hacked, resulting in the loss of 850,000 BTC, worth up to $400 million at the time – a huge number even today. The collapse of Mt. Gox left a stain on the reputation of Bitcoin and the crypto market at large.
However, where Mt. Gox was registered, Japanese authorities could recover only 141,686 BTC, with a current value of up to $2.8 billion. In addition, they held about 142,000 BCH, worth $16 million. This entire amount is being held by a trustee and will be refunded to users of Mt. Gox, often referred to by the courts as a “creditor of the exchange.”
With the Bitcoin price at the time of the hack being between $300 and $500, the fact that Mt. Gox is just refunding investors after a long time is considered a “slow bomb” within the cryptocurrency market. This is because the current BTC value is already dozens of times the amount then. The exchange’s creditors will also most likely not hold the coin after receiving it because the process of their legal fight with the exchange took eight long years.
The Mt. Gox Rumor
Amidst the Bitcoin market faltering after falling below the $15,000 threshold for the first time in a month, the crypto community was buzzing with the news that Mt. Gox is about to pay investors back all at once, claiming fresh selling pressure is coming on the market.
However, this information is incorrect. As of the last update of the trustee in July 2022, the creditor of Mt. The new Gox can only access the claim system, read information about the refund process, determine whether they want a one-time or small-scale refund, and choose a refund method (crypto or fiat).
In addition, the trustee has not yet announced any timeframe for the refund and is still waiting for a decision from the Japanese court. The only timeline is the one with an August deadline that the trustee mentioned allowed the transfer of the claim from Mt. Gox to another party.
Many creditors of Mt. Gox have also denied the news that the exchange is about to pay the coin on social networks, asserting that in addition to the method authorized by the trustee above, they have not been able to enter the address to receive BTC/BCH back, nor have they received any notification about the time of payment.
Crypto World and Fake News
The above incident is another example of how the cryptocurrency market is susceptible to false rumors, creating a panic that affects prices. Therefore, investors must be wary of information without specific sources spreading on social networks. They should only follow reputable news sites with specific evidence to support the information. Many people also take this opportunity to mock the ignorance and gullibility of many crypto investors.
Bitcoin in the past 24 hours has at times dropped to $ 19,800, the lowest value level since July 14, because of news about the Fed President’s speech.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)