Mt. Gox Creditor Dismisses Rumors of 140,000 BTC Flooding the Market
Rahul Nambiampurath - BeInCrypto
Eric Wall, a Mt. Gox creditor, summarily dismissed reports that all of the roughly 140,000 BTC sent to creditors would soon be dumped on the market. In reality, the payout will occur in tranches over months.
One of the creditors from the Mt. Gox incident has rejected reports about the now-defunct exchange repaying all of the approximately 140,000 BTC in one go.
Eric Wall tweeted on Aug. 28 that the payout will occur in tranches, steadily being doled out over time. He clarified that Mt. Gox is not distributing “any coins this week, or the next week, or the week after that.”
PSA: MtGox is *NOT* distributing any coins this week, or the next week, or the week after that.Source: I’m a MtGox creditor. The repayment system is not live yet.Next step: Go and block @TheAltcoinHub for spreading this misinfo.— Eric Wall (also supports X ) (@ercwl) August 27, 2022
Wall also said that some people have chosen to sell their claims to Fortress, but there has been no official confirmation on when the repayments will be handed out. Creditors have also not yet been given the opportunity to register their addresses where the assets will be sent. He did say that there would be an upcoming notice that would allow creditors to submit banking details, which would be the first step in getting the repayment plan going.
Wall was upset at the misinformation reports that were spreading around social media and called for the crypto community to block accounts that said that the handouts were being made. Others, too, were talking about the false information, emphasizing that it was a process that would take months.
Danny Devan, a crypto influencer, said that the repayment process is only just starting, and there would not be “insane selling” because the assets would be handed out over months. Devan was bearish about a large amount of BTC being sold and expected the bear market to be a mainstay for quite a while.
There’s so much false information floating around Twitter so let’s clear something up.Mt.Gox isn’t releasing ALL 137,000 bitcoin tomorrow. It’s starting the repayment process tomorrow so creditors will begin to receive their bitcoin. The entire process will take months!— Danny Devan (@dannydevan) August 27, 2022
The official document about the repayment procedure also clarifies many aspects of how it will be handled. Creditors can choose to receive an early lump-sum repayment. It asks for the creditors to register on the system as early as possible. Regarding the release of the assets, the court document says,
“Following discussions with the Court and in accordance with the Rehabilitation Plan, the Rehabilitation Trustee plans to set the Assignment, etc. Restriction Reference Period from approximately the end of August this year until all or part of the repayments made as initial repayments is completed for safe and secure Repayments.”
The repayment plan got its final approval in November 2021, to the relief of many creditors. The return of assets marks the end of what is one of the most notorious episodes in the crypto market’s history. It served as a warning to the crypto market, and its significance was recently matched by the crash of LUNA and its UST stablecoin.
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