• Two largest creditors of Mt. Gox, the now-defunct cryptocurrency exchange that got hacked in 2014, have chosen an early lump sum payment option that will not require a selloff of their Bitcoin holdings.
• The payment is scheduled for September 2023 and will allow the creditors to receive 90% of their recoverable funds estimated at 21% of their original holdings on the platform at the time of the hack.
• Creditors can elect to receive their payment in a mix of BTC, BCH, and yen, or they can ask for the entire amount to be given in fiat.
Mt. Gox’s Leading Creditors Opt for Bitcoin Payment
The two largest creditors of Mt. Gox, a now-defunct cryptocurrency exchange that got hacked in 2014 leading to the loss of 850,000 BTC, have chosen an early lump sum payment option that will not require a selloff of their Bitcoin holdings.
Payment Schedule
The payment is scheduled for September 2023 and will enable creditors to receive 90% of their recoverable funds estimated at 21% of their original holdings on the platform at the time of the hack.
Payment Options
Creditors who choose this option can elect to receive their payment in a mix of BTC, BCH, and yen, or they can ask for the entire amount to be given in fiat.
Waiting May Offer Higher Payouts
Opting for early payout allows creditors to get paid sooner and avoids any potential market impact from a large-scale Bitcoin sell-off. However, those who wait may be rewarded with higher payouts once all Mt. Gox litigation settles; this could take 5-9 years.
Two biggest creditors are expected to take bitcoin payments in Sept 2023 guaranteeing them 90% recovery rate compared to waiting which may offer higher returns but could take up 5-9 years.