Summary:
- Michaël van de Poppe believes that Mt.Gox’s Bitcoin repayment process will not disrupt the market.
- The defunct exchange was due to start paying creditors over 100,000 BTC in August this year, but there have been further delays
- 750,000 Bitcoin Tokens Stolen North The Tokyo-based platform suffered a massive hack in February 2014.
- The news of the repayment allegedly caused panic in the crypto market.
- Bitcoin was trading just above $20,000 on Sunday after falling below Saturday.
A cryptocurrency proponent speculates that the virtual currency market panic is “unfounded” as the Mt.Gox program launch involves some people The repayment program of 137,000 bitcoins after a historic hack on the platform in 2014.
Tokyo-based Mt.Gox was one of the largest BTC exchanges at the time. At its peak, the platform accounted for about 70% of all Bitcoin transactions. On Monday, February 24, 2014, the exchange shut down its official website following unusual trading activity.
A hacker reportedly used the credentials of a compromised auditor to transfer thousands of BTC to himself. The incident reportedly triggered a massive drop in the price of Bitcoin on exchanges, with more than 800,000 BTC tokens stolen.
The value of the hacked coins at the time was over $400 million.
Mt.Gox Civil Rehabilitation Program
Tokyo District Court approves so-called Mt.Gox “Civil Bitcoin” A “rehabilitation plan” six years after the exchange suffered a massive hack. According to the report, the plan proposes partial compensation to creditors.
The repayment plan was originally scheduled to launch in August 2022, but The process has been postponed.
BREAKTHROUGH:
Mt. Gox will not release #Bitcoin and will delay distribution again.
The whole crypto space is emphasizing this, but it is baseless .
— Michaël van de Poppe (@CryptoMichNL) August 28, 2022
Sentiment within the crypto community suggests that, Panic and concern over Mt.Gox clients dumping reimbursed BTC packages and further hitting crypto markets. At press time, total crypto market capitalization is hovering above $1 trillion after a risky rebound in previous weeks.
Bitcoin also struggled to stay above $20,000 after a brief weekend break.
BTC daily chart (Source: TradingView)
However, technical analyst Michaël van de Poppe pointed out that the fear of Mt.Gox Bitcoin is “unfounded” of”. Poppe highlighted the terms of the rehabilitation program and how the process could take months to complete.
