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MtGox To Begin Payouts Soon
Customers will still be up around 1,000% in fiat terms, despite losing over 80% of their BTC.
MtGox, the first major bitcoin exchange, may soon begin to reimburse customers who lost their funds when the platform ceased operating in February 2014. The organization's liquidators are said to be in the final stages of arranging BTC payments to users, almost 10 years after the exchange collapsed.
Customers are expected to receive a share 142,000 BTC out of the 200,000 BTC that were "discovered in an old format wallet" during bankruptcy proceedings. A further 650,000 BTC were stolen, and have never been recovered.
MtGox, which began life in 2010, was once responsible for around 90% of all bitcoin trading volumes. A series of hacks and exploits saw it drained of hundreds of thousands of bitcoins, which became apparent during the 2013 bubble.
Reports suggest that customer addresses for payouts have now been confirmed, raising the possibility that the liquidators might start sending out BTC in the next few months.
If this happens, around 142,000 BTC that was out of circulation will hit user wallets, raising the possibility of large-scale selling. The market has already been rattled by GBTC outflows, which have seen tens of thousands of BTC sold since the new ETFs launched.
Down In BTC, Up In USD
The recovery of those 200,000 BTC means that customers are at least in line to receive something, unlike the victims of many other exchange failures. After costs, 142,000 BTC will be paid, which is around 17% of the coins they lost when Gox closed down. However, at the time bitcoin was worth around $700. It has increased in value almost 6,000% since then, meaning that users are still going to receive roughly 10 times as much money as they lost in fiat terms.
Moreover, they are receiving their money in BTC. That's more than can be said for FTX creditors, who will receive a dollar payout. Unfortunately for them, their holdings will be valued at the point when FTX declared bankruptcy, at the very bottom of the bear market. Even though BTC has almost tripled in price since then, and some assets (like SOL) have increased far more, they won't see those gains.
It sucks being Goxxed, or FTX'd. But at least Gox's creditors have the benefit of a decade of enforced HODLing in their favor.
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