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	<title>creditors &#8211; USA NEWS LIVE</title>
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	<title>creditors &#8211; USA NEWS LIVE</title>
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		<title>Mt. Gox begins repaying Bitcoin to creditors a decade after collapse</title>
		<link>https://bloggingthree.soflytech.com/2024/07/mt-gox-begins-repaying-bitcoin-to-creditors-a-decade-after-collapse/</link>
		
		<dc:creator><![CDATA[chandankumarsoft]]></dc:creator>
		<pubDate>Sun, 07 Jul 2024 21:13:20 +0000</pubDate>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[begins]]></category>
		<category><![CDATA[Bitcoin]]></category>
		<category><![CDATA[collapse]]></category>
		<category><![CDATA[creditors]]></category>
		<category><![CDATA[decade]]></category>
		<category><![CDATA[Gox]]></category>
		<category><![CDATA[repaying]]></category>
		<guid isPermaLink="false">https://bloggingthree.soflytech.com/?p=8366</guid>

					<description><![CDATA[The trustee of Mt. Gox, the Japanese Bitcoin Stock exchange that went bankrupt a decade ago, on Friday said The company has begun making payments to a few of its creditors in Bitcoin and Bitcoin Cash. The announcement further stated that repayments to other users of the hacked exchange can be &#8220;prompt&#8221; in the event [&#8230;]]]></description>
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<p>The trustee of Mt. Gox, the Japanese <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="SpecialReportArticle-QuoteInBody-1">Bitcoin<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><button class="AddToWatchlistButton-watchlistButton" aria-label="Add To Watchlist" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"></span></button></span></span></span>  Stock exchange that went bankrupt a decade ago, <a href="https://www.mtgox.com/img/pdf/20240705_01_announcement_en.pdf" target="_blank" rel="noopener">on Friday said</a> The company has begun making payments to a few of its creditors in Bitcoin and Bitcoin Cash.</p>
<p>The announcement further stated that repayments to other users of the hacked exchange can be &#8220;prompt&#8221; in the event that they met certain conditions, including account verification and registration with considered one of the designated digital asset exchanges through which the bankruptcy estate allows withdrawals in digital tokens.</p>
<p>“We ask the eligible restructuring creditors to be patient,” the statement continues.</p>
<p>The Bitcoin price has fallen by almost 6% within the last 24 hours.</p>
<p>Customers of the Tokyo-based stock exchange have been waiting for 10 years for his or her money to be repaid.</p>
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<h2 class="ArticleBody-subtitle"><a id="headline0"></a>What is Mt. Gox?</h2>
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<p>Mt. Gox, once considered one of the world&#39;s largest cryptocurrency exchanges, filed for bankruptcy in February 2014 after a series of robberies resulted in as much as 950,000 bitcoins &#8211; now price over $58 billion &#8211; disappearing.</p>
<p>Mt. Gox blamed a bug within the cryptocurrency&#39;s framework for the disappearance of the bitcoins. While users received messages about incomplete transactions when accessing the exchange, the coins may very well have been illegally withdrawn from their accounts by hackers, Mt. Gox said.</p>
<p>After the bankruptcy declaration, 140,000 of the missing bitcoins were recovered, meaning that around $9 billion price of bitcoins (at today&#39;s rates) will likely be returned to their owners. At the time of the bankruptcy, one bitcoin was trading for around $600. Today, it&#8217;s price greater than $54,000 &#8211; a rise of just about 9,000%.</p>
<p>According to data from Arkham Intelligence, Mt. Gox moved billions of dollars price of bitcoins from its crypto wallets on Thursday and Friday ahead of the repayment memorandum.</p>
<p>More than 47,000 bitcoins price $2.7 billion were withdrawn from an offline Mt. Gox cryptocurrency wallet, Arkham Intelligence said Friday.</p>
<p>Some of the funds, valued at $84.9 million, were transferred to Japanese crypto exchange Bitbank, which Arkham Intelligence said is among the many platforms supporting refunds to Mt. Gox users. Another $63.6 million in Bitcoin was transferred to an unknown counterparty, which Arkham Intelligence said was &#8220;likely a publicly traded refund exchange.&#8221;</p>
<p>According to Arkham Intelligence, Mt. Gox wallets still hold 138,985 bitcoins, price around $7.5 billion at current rates, meaning billions of dollars of the cryptocurrency have yet to be paid out.</p>
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<h2 class="ArticleBody-subtitle"><a id="headline1"></a>What impact will this have on Bitcoin?</h2>
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<p>Analysts previously told CNBC that they expect Mt. Gox&#39;s repayment plan to steer to heavy selling in Bitcoin, but that it will likely be short-lived and precede further price increases later this yr and into early 2025.</p>
<p>John Glover, chief investment officer of crypto lending firm Ledn, told CNBC that the windfall for Mt. Gox users would likely lead to very large Bitcoin sales as investors looked to lock of their profits.</p>
<p>&#8220;Many will clearly monetize their assets and rejoice that their fortune in the collapse of Mt. Gox was the best investment they ever made,&#8221; said Glover, who previously served as a managing director at Barclays. &#8220;Some will clearly choose to take the money and walk away,&#8221; he wrote in an emailed comment.</p>
<p>JPMorgan analysts said in a note last month that they expect Mt. Gox customers to sell a few of their bitcoins to cash in on the cryptocurrency&#39;s huge price increases.</p>
<p>“Assuming a lot of the Mt. Gox creditor liquidations happen in July, [this] creates a pattern where crypto prices come under &#8230; pressure in July but recuperate from August onwards,&#8221; they wrote.</p>
<p>Ultimately, the total amount owed to creditors – about 140,000 bitcoins – represents about 0.7 percent of the total 19.7 million bitcoins currently in circulation.</p>
<p>This means, analysts say, that despite the likely price impact, there is sufficient liquidity to cushion the impact of a severe sell-off.</p>
<p>James Butterfill, head of research at CoinShares, told CNBC that the billions of dollars of bitcoin traded daily on trusted exchanges this year suggests that &#8220;there may be enough liquidity to soak up these sales in the course of the summer months.&#8221;</p>
<p>Jacob Joseph, research analyst at CCData, echoed this view, saying the markets were more than capable of absorbing the selling pressure.</p>
<p>&#8220;In addition, a big portion of creditors will likely accept a ten percent discount on their holdings to receive early repayment, and never all holdings will likely be liquidated on the open market, reducing overall selling pressure,&#8221; he told CNBC by email.</p>
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<p><em>image credit : www.cnbc.com</em></p>
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		<title>Mt. Gox Bitcoin creditors receive unexpected windfall after 10,000 percent price increase</title>
		<link>https://bloggingthree.soflytech.com/2024/06/mt-gox-bitcoin-creditors-receive-unexpected-windfall-after-10000-percent-price-increase/</link>
		
		<dc:creator><![CDATA[chandankumarsoft]]></dc:creator>
		<pubDate>Sat, 29 Jun 2024 23:40:24 +0000</pubDate>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[Bitcoin]]></category>
		<category><![CDATA[creditors]]></category>
		<category><![CDATA[Gox]]></category>
		<category><![CDATA[increase]]></category>
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		<guid isPermaLink="false">https://bloggingthree.soflytech.com/?p=7714</guid>

					<description><![CDATA[Mt. Gox, the Japanese Bitcoin The stock exchange, which went bankrupt a decade ago after a serious hacker attack, is now finally about to repay its creditors, who&#8217;re being generously rewarded for his or her patience. Up to 950,000 bitcoins were lost within the 2011 hack, at a time when the cryptocurrency was trading for [&#8230;]]]></description>
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<p>Mt. Gox, the Japanese <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-1">Bitcoin<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><button class="AddToWatchlistButton-watchlistButton" aria-label="Add To Watchlist" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"></span></button></span></span></span>    The stock exchange, which went bankrupt a decade ago after a serious hacker attack, is now finally about to repay its creditors, who&#8217;re being generously rewarded for his or her patience.</p>
<p>Up to 950,000 bitcoins were lost within the 2011 hack, at a time when the cryptocurrency was trading for under a fraction of its current value. About 140,000 of those coins were recovered, an amount that, at today&#39;s rates, means about $9 billion value of bitcoins can be returned to their owners.</p>
<p>Among the plaintiffs is Gregory Greene from Illinois. Shortly after the stock exchange filed for bankruptcy in February 2014, <a href="https://cdn.arstechnica.net/wp-content/uploads/2014/03/Greene-MtGox-1st-Amend-Complaint.pdf" target="_blank" rel="noopener">filed a category motion lawsuit</a> against Mt. Gox and its former CEO. Greene said on the time that his frozen account contained $25,000 value of bitcoins, but didn&#8217;t disclose what number of coins were in his wallet.</p>
<p>Bitcoin was trading for about $600 on the time. Today, it&#39;s value over $60,000. That means Greene&#39;s lost stash can be value about $2.5 million at current prices, a ten,000 percent gain. But it&#39;s unclear how much he&#39;ll receive within the payouts, that are expected to are available in July.</p>
<p>John Glover, chief investment officer of crypto lending firm Ledn, said creditors are in for a historic windfall.</p>
<p>&#8220;Many will clearly monetize their assets and be happy that their wealth after the collapse of Mt. Gox was the best investment they ever made,&#8221; Glover told CNBC.</p>
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<h2 class="ArticleBody-subtitle"><a id="headline0"></a>What was Mt. Gox?</h2>
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<p>Mt. Gox was a web-based marketplace where people could buy or sell bitcoins in various currencies. At the peak of its success, the platform was the biggest spot bitcoin exchange on the earth, claiming to process around 80% of all global dollar transactions against bitcoin.</p>
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<p>The company, whose acronym consists of the name “Magic: The Gathering Online Exchange,” was closed in February 2014 after a series of robberies.</p>
<p>Mt. Gox blamed a bug within the cryptocurrency&#39;s framework for the disappearance of the bitcoins. While users received messages about incomplete transactions when accessing the exchange, in point of fact the coins could have been illegally withdrawn from their accounts by hackers, Mt. Gox said.</p>
<p>On Monday, the court-appointed trustee overseeing the stock exchange’s insolvency proceedings <a href="https://www.mtgox.com/img/pdf/20240624_announcement_en.pdf" target="_blank" rel="noopener">said</a> Payments to the corporate&#39;s roughly 20,000 creditors would begin next month. The payouts can be made in a mixture of Bitcoin and Bitcoin Cash, an early offshoot of the unique cryptocurrency.</p>
<p>Alex Thorn, head of research at crypto asset management firm Galaxy Digital, said in a note last month that the overwhelming majority of creditors he has spoken to will accept payment in kind, in cryptocurrency somewhat than fiat money. They may even largely keep the assets.</p>
<p>Many of the highest holders with claims to Mt. Gox assets are well-known within the bitcoin world, he said. They include early bitcoin investor Roger Ver, Blockstream co-founders Adam Back and Greg Maxwell, and Bruce Fenton, former executive director of the Bitcoin Foundation.</p>
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<h2 class="ArticleBody-subtitle"><a id="headline1"></a>Some will “take the money and run away”</h2>
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<p>Based on discussions with institutional investors who must receive payouts, &#8220;we do not believe there will be any significant selling in this group,&#8221; Thorn wrote.</p>
<p>However, Glover, who previously served as managing director at Barclays, said there was still prone to be significant selling by creditors who now have the chance to reap massive gains after years of waiting.</p>
<p>“Some will clearly choose to take the money and walk away,” Glover said.</p>
<p>Analysts at JPMorgan Chase said the potential for enormous selling by Mt. Gox creditors next month represents a &#8220;downside risk&#8221; but one which can be short-lived.</p>
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<p>“Assuming most of the Mt. Gox creditor liquidations take place in July, [this] creates a pattern where crypto prices will continue to come under pressure in July but will pick up again from August onwards,” the analysts wrote.</p>
<p>There&#39;s also the chance that a variety of bitcoin investors on Mt. Gox have already spent their money. In the last decade because the exchange&#39;s bankruptcy, a secondary market has emerged for those trying to liquidate their bankruptcy claims. Those who&#8217;ve held out are the true believers, Thorn said.</p>
<p>&#8220;Thousands of these creditors have waited 10 years for their payouts and have resisted compelling and aggressive offers during that time, which suggests they want their coins back,&#8221; Thorn said. He expects limited selling pressure, but acknowledged that selling just 10 percent of the distributed bitcoins &#8220;will have an impact on the market.&#8221;</p>
<p>Certain tax consequences may hinder the sale.</p>
<p>Luke Nolan, Ethereum research fellow at digital asset management firm CoinShares, said a key reason Mt. Gox creditors have opted for repayment in kind is the tax implications. And JPMorgan said in a note Monday that individuals tend to just accept their payout in cryptocurrencies &#8220;either for tax reasons or because they think an immediate liquidation would wipe out potential further price appreciation in the future.&#8221;</p>
<p>Glover said there are methods to avoid high capital gains taxes and still take advantage of Bitcoin&#39;s huge rise in value.</p>
<p>&#8220;Those in jurisdictions with capital gains tax may choose to hold their positions to avoid this huge tax bill,&#8221; Glover said, &#8220;and instead use their bitcoins as collateral to borrow dollars, thus monetizing the bitcoins without having to sell them.&#8221;</p>
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<p><em>image credit : www.cnbc.com</em></p>
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