A correction in Bitcoin (BTC) and crypto markets is deepening after news that former crypto exchange Mt. Gox is following through with a plan to distribute roughly $9 billion worth of digital assets.
According to crypto data aggregator Coinglass, over $313 million in positions have been liquidated in the last 24 hours, mostly traders long BTC and Ethereum (ETH).
Mt. Gox was the world’s largest Bitcoin exchange at one point before abruptly going bankrupt and “losing” most of its coins due to theft.
The exchange ultimately recovered most of its coins and has been in a lengthy bankruptcy process paying back its former customers, a large source of uncertainty in the market given the amount of potential sell pressure it could release if it were to sell its BTC to redeem creditors.
Now, in a statement, Mt. Gox says that repayments of BTC and Bitcoin Cash (BCH) will be made from the beginning of July.
“We have taken time to ensure safe and reliable repayment to creditors, including technical remedies for safe repayments, compliance with financial regulations in each country, and discussion of repayment arrangements with the cryptocurrency exchanges.
We will commence the repayments in the order of the cryptocurrency exchanges with which the Rehabilitation Trustee will complete the exchange and confirmation of the required information. Please wait for a while until the repayments are made.”
When coin movements were spotted in May, former Mt. Gox CEO Mark Karpelès also clarified that preparations were underway for a distribution likely to happen later this year.
“As far as I know everything is fine with Mt. Gox. The trustee is moving coins to a different wallet in preparation of the distribution that will likely happen this year, there is no imminent sale of bitcoins happening.”
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