The creditor will be paid by September this year instead of waiting for the legal processes to be completed.
The highest creditor of Mt. Gox chose to have an early payment in Bitcoin
, decided not to wait any longer for an even bigger payment.
Mt Gox Investment Fund, the largest creditor of the defunct cryptocurrency exchange, has reportedly decided to take its chances with a smaller but earlier payout rather than waiting for all the legal processes to be resolved. This means the creditor will be paid by September this year instead of possibly waiting another nine years before they get their money back.
According to Bloomberg, choosing the earlier payout means that the creditor will receive 90% of what is owed to them, and the bankruptcy trustee does not need to sell tokens to raise trust funds for the payment, because the creditor has also chosen to cash in on them. to become BTC. This will alleviate market concerns as token sales of that size could potentially have a negative impact on the crypto market.
Other creditors of the exchange also have until March 10 to decide whether they want to wait for a larger payment rate or take the earlier repayment in September.
Related: Mount Gox creditors dismiss rumors of massive Bitcoin dump
On January 6, Mt. Gox trustee Nobuaki Kobayashi urged creditors to take the necessary steps before the deadline. Kobayashi wrote that creditors who fail to do so will not be able to receive their funds or will have to bring documents to the headquarters in Japan and receive payments in Japanese yen.
Mt Gox used to be considered the largest cryptocurrency exchange in the world before it went bankrupt in 2014 after 750,000 of its customer’s BTC and 100,000 of its own Bitcoin were stolen. At the time of the incident, the fund was only worth about $473 million. However, at current market prices, it is worth around $20 billion.