The two biggest creditors of Mt. Gox, the crypto exchange that failed due to a hack nine years ago, have elected to get their bankruptcy recovery paid out mostly in bitcoin (BTC), according to people familiar with the matter.
Defunct New Zealand-based crypto exchange Bitcoinica and MtGox Investment Funds (MGIF) – which together represent about a fifth of all Mt. Gox claims – will as a result get paid 90% of their collectable funds (which are calculated at approximately 21% of what they had locked on the platform at the time of the hack in 2014).
Their decision to pick the former option could soothe long-standing fears among bitcoin holders that a wave of simultaneous liquidations tied to Mt. Gox bankruptcy recoveries could drive down the price of bitcoin. Had these two creditors opted to take the payout in fiat, the trustee overseeing the bankruptcy estate would likely have been compelled to sell off a significant portion of Mt. Gox’s recovered bitcoin holdings to fulfill all the fiat requests.
All Comments