The trustees of the defunct crypto exchange announced on Monday that they are in the process of distributing bitcoin (BTC) that was stolen from clients in a 2014 hack during the first week of July.
Crypto traders have expressed that the selling pressure from Mt. Gox’s recently announced repayments may be significantly lower than anticipated, which alleviates concerns about an imminent selloff.
“The potential impact on the price of bitcoin from Mt. Gox’s distribution of Bitcoin is largely exaggerated,” stated Sam Callahan, senior analyst at Swan Bitcoin, in an email to CoinDesk on Tuesday. “Creditors who desired to sell their bitcoin have now had over a decade to do so by selling their bankruptcy claims to more convicted, long-term investors.”
He also stated that the majority of creditors are likely to retain their bitcoin, as their cost basis is less than $700 per bitcoin.
Galaxy Research stated in a Monday note that 65,000 BTC will be distributed to individual creditors, while the remaining 30,000 BTC will be distributed to claims funds and a distinct bankruptcy. The total amount of BTC earmarked for distribution is 141,000 BTC.
The firm stated that it is reasonable to presume that the majority 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 have announced that they are in the process of distributing the bitcoin (BTC) that was stolen from clients in a 2014 breach during the first week of July.
The precise bitcoin amount to be distributed remains unclear to the public; however, in May, the exchange consolidated 140,000 BTC, which is approximately $9 billion, from numerous cold wallets to a single address.
On Monday, bitcoin experienced a more than 4% decline due to anticipated selling pressure, momentarily falling below $60,000 for the first price since early May.
Also Read: NFTs are now being sold by billionaire Mark Cuban after a two-year hiatus
