Several Mt. Gox creditors have dispelled rumours of a plan by the exchange to release a considerable stash of Bitcoins owed to creditors later this month, potentially leading to a massive dump on the cryptocurrency.
In the past week, crypto Twitter and other social media spaces have been awash with claims that the now defunct crypto exchange was planning on refunding its original investors. The rumours, which come amidst an already beat-down market, sent shockwaves across the crypto community, with investors afraid that selling those Bitcoins would lead to a broader market carnage.
In a thread of tweets, Eric Wall, one of the many Mt. Gox creditors, dismissed the FUD, confirming that there would not be a 137,000 BTC dump as alluded by several Crypto Twitter influencers. According to Wall, the exchange was yet to complete the repayment system needed to distribute the coins, meaning that creditors would have to wait longer.
“MtGox is NOT distributing any coins this week, or the next week, or the week after that. I’m a MtGox creditor,” said wall. “The repayment system is not live yet. As it currently stands, you can’t even register where (which exchange) you want your BTC & BCH sent yet. Pay-outs will also occur in tranches.”
The early BTC investor went on counter-arguments that there was an official timeline for the refund, as claimed by some people. Marshall Hayner, another Mt. Gox creditor, also confirmed that they were not close to receiving their bitcoin, echoing the claims of other Mt. Gox creditors. Both Wall and Hayney stated that they were not planning on dumping their coins as earlier feared, suggesting that that was the position for most other creditors.
“Most people like me also have no intention of selling it. Don’t believe what influencers on Twitter are telling you,” said Hayner.
However, Considering Mt. Gox creditors are still over 4000% in profit since the exchange shut down operations in 2014, some investors are still afraid that a speedy refund of the coins could trigger a black swan event for the crypto market. Nevertheless, others believe that the recent crypto market sell-off could encourage the creditors to hold their coins and possibly add more rather than sell.
According to the Mt. Gox Website, the rehabilitation process for Mt. Gox creditors is still ongoing. Last month, Nobuaki Kobayashi- the exchange’s court-appointed Rehabilitation Trustee, sent out a letter to creditors informing them that he was “preparing to make repayments” as directed by a Tokyo District Court on November 16, 2021. The trustee also requested them to log in to the Mt. Gox claims section and provide payment details. However, he did not give a clear timeframe for when the payments are expected to be made.