- The Mt.Gox Investment Fund and Bitcoinica are reportedly hoping to make refunds in Bitcoin from the Mt.Gox Trustee.
- Both companies are two of the largest creditors of Bitcoin exchange Mt.Gox, which went bankrupt in 2014.
- A redemption program for all creditors indicates that payments will begin on September 30, 2023.
Mt. Gox creditors have been waiting nearly a decade for refund payments after one of Bitcoin’s earliest (and by far) largest exchanges collapsed.
But now, as the regeneration process is coming to an end, two of the largest creditors of the defunct cryptocurrency exchange have opted to pay in Bitcoin.
Mt.Gox Investment Fund chooses BTC payment
According to the news report The Mt Gox Investment Fund, the largest creditor of the defunct bitcoin exchange, has settled to be paid in bitcoin, according to Bloomberg. Another top creditor looking to recover funds in BTC is Bitcoinica, a crypto platform that went bankrupt after multiple hacks.
Creditors have agreed to the redemption program in October 2021 and are now updating their payment details when selecting payment options.
Earlier this year, Mt.Gox trustee Nobuaki Kobayashi notified creditors that the court had allowed him to extend the deadline for registering beneficiary information to March 10, 2023. Repayments are scheduled in virtual or fiat currency and are expected to begin on September 30th.
According to the report, both Mt.Gox Investment Fund and Bitcoinica chose to receive 90% of their repayments in BTC. Two creditors he will be paid in September.
What does this mean for BTC?
The move is very positive for Bitcoin, as receiving payments in cryptocurrencies would greatly reduce the impact of a dump if trustees had to liquidate their coins to pay in fiat.
Bitcoin price surged to a high above $25,000 this week as crypto market sentiment rose despite the latest measures by US regulators. On Friday (11:00 am ET), BTC slumped to his $23,300 low before breaking above $24,000 again.