Former Mt. Gox Chief Labels Bitcoin Repayments as False Alarm
The former chief executive of Mt. Gox, Mark Karpelès, labeled the claims of Bitcoin repayments by the defunct crypto exchange as false claims.
Karpelès informed his followers via Tuesday’s May 28 update on X (formerly Twitter) that Mt. Gox has yet to begin redistributing Bitcoins. The former executive calmed the fears by assuring Mt. Gox is fine and downplayed fear that the exchange is behind Bitcoins likely to cause an imminent market dump.
Former Mt. Gox Chief Declares Bitcoin Sell-off False
Glassnode analyst informed the Bitcoiners not to worry even if the redistributions to Mt. Gox’s creditors begin regarding a potential market crash. The analyst echoed the assurance by Karpelès and indicated that the Mt. Gox trustee was moving the coins to another wallet as distribution preparedness took shape.
Karpelès ruled out the imminent sale of Bitcoins from Mt. Gox. The defunct crypto platform of Japanese origin had 70% dominance in Bitcoin (BTC) trading volume at the onset of the digital currency.
Mt. Gox would, in February 2014, suffer a fatal hack with 840,000 Bitcoins lost valued at $460 million. A decade later, the crypto exchange still works to repay the customers who had balances.
A 2019 ruling by the Tokyo District Court found Karpelès guilty of erroneous electronic records linked to Mt. Gox’s books. The court held he did not embezzle funds and breach trust, thereby avoiding prison term as he observed a clean four-year record.
Mt. Gox admitted the inability to reclaim the lost funds, though it acknowledged gathering 141,686 Bitcoins intended to distribute the credentials. The redistribution will feature 69 yen and 143,000 Bitcoin Cash (BCH) tokens.
With the appreciation in the Bitcoin value since the hacking incident, creditors will earn a higher payout in US$ than the initial balances in the accounts. Although the redistribution is a boon for the affected clients, Bitcoiners perceive the Mt. Gox estate as a ticking bomb that could plunge the price.
The going theory is that most creditors will likely dispose of the coins upon receipt. Such an occurrence would result in Bitcoin oversupply with the flood nipping the bull market in the bud phase.
Glassnode Analysts Dismisses Bitcoin Sell-off
Blockchain analysts alerted on Tuesday that Mt. Gox-owned wallet remitted Bitcoins valued at $9.6 billion to an unknown wallet. The transaction prompted rumors that Mt. Gox had just unveiled the creditor redistributions.
Arkham Intelligence indicates that Mt. Gox’s Bitcoins are now held in three blockchain wallets, each holding 47,229 Bitcoins. Glassnode researcher James Check indicated that the redistribution will not cause any worry for the Bitcoin holders.
Check predicts creditors will view the Bitcoin at the prevailing price, not the sub $1,000 price when they purchased the coins a decade ago. At the present price, which hovers around $68,000, the analyst forecasts few investors could portray the profit-taking conduct when repaid the dues to damp the Bitcoins.
Check acknowledged that the view still needs to be fully established but considers the race to the distribution date to be a way to replicate the typical tracking of whales and exchange balances.
Check perspective aligns with the letter published by the Mt. Gox trustee Nobuaki Kobayashi, who announced the exchange repayment on October 31, 2024.
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