Mt Gox Trustees to Begin Distributing Stolen Bitcoin in July, Easing Market Concerns
The trustees of the defunct crypto exchange announced on Monday that they are preparing to commence the distribution of bitcoin (BTC) stolen in a 2014 hack, beginning in the first week of July.
Crypto traders believe that the selling pressure from Mt Gox’s newly announced repayments might be significantly less than market observers anticipate, thus easing concerns about a potential imminent selloff.
Sam Callahan, a senior analyst at Swan Bitcoin, commented in a Tuesday email to CoinDesk, “The impact on bitcoin’s price from Mt. Gox distributing Bitcoin is likely overblown. Creditors who intended to sell their bitcoin have had over ten years to do so by selling their bankruptcy claims to more committed, long-term investors.”
He further explained, “Additionally, most creditors will probably retain their bitcoin since their cost basis is under $700 per bitcoin.”
Galaxy Research, in a Monday note, mentioned that of the total 141,000 BTC designated for distribution, 65,000 BTC would be delivered to individual creditors, while another 30,000 BTC would be distributed to claims funds and a separate bankruptcy.
The firm noted, “It’s reasonable to assume that most of the BTC received by funds that acquired claims from creditors will be distributed to LPs in kind and not sold off,” thereby alleviating concerns.
The trustees of the defunct crypto exchange stated they are gearing up to distribute the bitcoin (BTC) stolen in the 2014 hack in the first week of July.
While the exact amount of bitcoin to be distributed remains undisclosed publicly, the exchange consolidated 140,000 BTC, approximately worth $9 billion, from multiple cold wallets into a single address in May.
Expectations of the forthcoming selling pressure caused bitcoin to plummet over 4% on Monday, briefly dropping below $60,000 for the first time since early May.
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