As an analyst with a background in cryptocurrency and experience in tracking the market’s trends, I can’t help but feel a mix of emotions regarding the recent announcement from Mt. Gox about repaying affected users starting in July 2024. This infamous exchange, which once processed over 70% of all Bitcoin transactions at its peak, was left in ruins after multiple attacks resulted in the loss of approximately 809,000 bitcoins in 2014.
Starting the first week of July, Mt. Gox will initiate reimbursements to users who were affected when the exchange failed to securely store their assets during its high-profile hack in 2014. This incident is one of the most notorious in cryptocurrency history and ultimately led to Mt. Gox’s permanent closure. Over a period of more than two years, multiple attacks on the platform resulted in the theft of approximately 809,000 bitcoins, which remained undetected until the damage was already done.
Starting July 2024, users are set to receive their reimbursements. Mt. Gox’s trustee, Nobuaki Kobayashi, announced the repayment process will commence from this month for Bitcoin (BTC) and Bitcoin Cash (BCH).
For more than nine years, affected users have been anticipating the return of their stolen cryptocurrencies. In 2023, the Mt. Gox estate, dealing with bankruptcy proceedings, announced that those who had submitted claims would receive their compensation by October 2024. At its pinnacle, this exchange handled approximately 70% of all Bitcoin transactions. However, its once-impeccable reputation crumbled as hackers exploited its weak security measures in the past. Unfortunately, Mt. Gox kept their assets in hot wallets, which ultimately led to these catastrophic losses.
Mt. Gox will restore approximately 140,000 bitcoins to its affected parties, representing a significant increase in worth compared to the approximate $15 billion value of the Bitcoin stolen from the platform years ago when each coin was valued at around $1,000. Since then, Bitcoin’s price has soared and reached over $60,000, with a previous peak above $70,000 this month.
The announcement regarding Bitcoin’s repayments led its price to slide under $61,000. With such a significant quantity of Bitcoin entering the market, it is anticipated that the asset’s value will decrease further. Traders speculate this decline could be substantial as creditors are likely to sell a portion of their earnings, capitalizing on Bitcoin’s price surge over the years – an opportunity they have been denied for quite some time.
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2024-06-24 22:27