The distribution of funds to former users of the defunct crypto exchange Mt. Gox is set to begin in 2023 after the appointed debtor shared the final modalities for the repayment.
Indeed, the customers are set to receive about $1.7 billion in cash, 141,000 Bitcoins (BTC), and another 142,000 Bitcoin Cash (BCH) from January next year, targeting about 10,000 customers globally, Rehabilitation Debtor indicated in a note on October 6.
Ahead of the repayment, the creditors will be required to select a payment method on the MTGOX Online Rehabilitation Claim Filing System. At the same time, the debtor set a deadline of January 10, 2023, for submitting the necessary information.
Notably, the creditors will be required to select between four main repayment options, including early lump-sum repayments, repayment for a portion of cryptocurrency rehabilitation claims digital assets, reimbursement by bank remittance, and repayment by remittance through a Fund Transfer Service Provider. However, all the creditors will receive an initial base payment.
Initial repayment delay
The schedule by the debtor comes barely a month after Mt. Gox trustee Nobuaki Kobayashi stated that repayment would be made in ‘due course’ after an initial postponement.
It is worth noting the payout has been a center of increased conversations within the cryptocurrency circles. Of interest was the impact of the payout on the price action of the involved assets, potentially leading to significant market swings.
In this case, it was assumed that amid the ongoing Bitcoin volatility, the Mt. Gox investors would opt to sell the Bitcoin, translating to more market turbulence.
However, the speculation was dispelled after the debtor offered different payout methods. Furthermore, the process is expected to take several months hence eliminating the possibility of triggering volatility.
Interestingly, a market section believes the creditors will not sell their Bitcoin instantly. Most of them are likely early believers in Bitcoin and might hold onto the asset to rally before selling.