The largest creditor in the long-running bankruptcy process of the Mt Gox crypto exchange has opted for an early payout in Bitcoin rather than fiat currency, easing some concerns about the token’s price outlook.
(Bloomberg) — The largest creditor in the long-running bankruptcy process of the Mt Gox crypto exchange has opted for an early payout in Bitcoin rather than fiat currency, easing some concerns about the token’s price outlook.
Mt Gox Investment Fund has picked an early payout in September this year, according to a person familiar with the matter, who asked not to be identified as the information is private.
The fund decided against waiting for all the litigation around the failed exchange to be resolved, which could take as many as nine years, the person said.
The fund will get 90% of what’s collectible, the person said. The bankruptcy trustee won’t have to sell tokens in the open market since the creditor chose to receive Bitcoin. Such sales could have sapped Bitcoin’s price.
Mt Gox creditors have until March 10 to decide whether to chose the September payout or to wait longer to recover a higher percentage of their claims.
Tokyo-based Mt Gox was at one time the world’s biggest Bitcoin exchange. It lost some customer assets and went bankrupt in 2014.
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The bankruptcy trustee held a trove of 141,686 Bitcoin as well as cash and Bitcoin Cash coins as of September 2019, according to prior documents. At current prices, that Bitcoin is worth about $3.4 billion.
CoinDesk reported on the early payout plans earlier Thursday.
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