The largest creditor of the now-bankrupt crypto exchange Mt. Gox prefers to hold Bitcoin instead of selling, Bloomberg reported citing anonymous sources.
Mt. Gox Investment Fund, the creditor, in question, doesn’t plan to sell the tokens that are slated to be returned in September, this year.
It needs to be told that, Nobuaki Kobayashi, who was appointed as the legal trustee for the defunct Japanese bitcoin exchange issued a notice on March 7, informing creditors to register their repayment claims before March 10, 2023 [Japan Time].
But as per the latest publication, the deadline for claim application registration has been extended to April 6, 2023.
Recently, the top creditor chose to have an early payout in Bitcoin rather than wait longer for an even larger payment.
According to Bloomberg, the creditor has reportedly opted for an earlier but lesser compensation by September this year.
The early plan, as per the report, meant that the recipient will get 90% of what was due to them. Here the trustee need not sell tokens to buy fiat funds since the creditor also chose to be paid in BTC.
This will ease market concerns because token sales of that magnitude could potentially have a negative impact on the crypto market, the report added.
The longer option, on the other hand, would take another nine years after all the legal issues are resolved but with comparatively more payout.
Prior to its bankruptcy in 2014 as a result of the theft of 800,000 bitcoins, Mt. Gox was regarded as the world’s biggest cryptocurrency exchange.
Since then, 200,000 BTC have been found; these coins, together with the associated bitcoin cash [BCH] assets, are now being used to pay off Mt Gox’s debtors.
Meanwhile, another event has sparked worries about potential sell-offs.
US Authorities Move Stolen Bitcoins; Another Sell-Off Scare?
Roughly $1 billion worth of bitcoin recovered from dark web hacks by U.S. authorities were transferred to new wallet addresses, including one owned by Coinbase, sparking fears of intensive sell-offs.
According to data from blockchain security firm PeckShield, authorities moved the tokens in three transactions where around 10k bitcoin were sent to Coinbase-controlled wallets, while another $41,000 tokens were shifted to government-owned wallets.
Within hours of the findings, investors expressed their concerns that authorities might dump the recovered bitcoin on the open market, sinking the price further.
The world’s largest crypto is yet to recover from its 21st Feb gains and is currently trading below $22k.