Mt.Gox Repayment gets Pushed to September, and 137K Bitcoin is on Hold

Sahana Kiran
Source – Unsplash

Hacks and scams aren’t new to the crypto-verse. However, the one that shook the entire crypto market was the attack on Mt.Gox back in 2014. With the exchange handling about 70 percent of the overall Bitcoin transaction across the globe, the attack on the platform caused chaos. Hackers reportedly stole 740,000 BTC and 100,000 more from the firm. While the firm filed for bankruptcy, the funds continued to move around.

Earlier this week, rumors about how there would be a potential dump of 137,000 Bitcoins surfaced. While one of its creditors suggested otherwise, he also noted that the exchange’s infrastructure wasn’t completed to fulfill the repayment. However, yesterday, it was brought to light that a Restriction Reference Period was in place, and this is considered one of the last steps in paying creditors back.

According to the latest reports, the restriction reference period starts on 15 September. During this time, all forms of “assignment transfer or succession, provision as collateral, or disposition by other means of rehabilitation claims” would be put on hold. Creditors were urged to make claims about the funds they had lost during the infamous attack before the 15th. Following with the Rehabilitation Trustee would not accept any applications.

Further elaborating on the same, the file read,

“This may result in rehabilitation creditors being unable to receive their preferred Repayments, the Repayment date being delayed significantly compared to other rehabilitation creditors, or at worst, the Repayment amount may be deposited with the Tokyo Legal Affairs Bureau in accordance with laws and regulations.”

So what happens to the 137 Bitcoin; Is the dump scare real?

One of Mt.Gox’s creditors, Eric Wall, in an elaborate Twitter thread, noted that the chances of 137K Bitcoin moving were doubtful. Wall pointed out how the exchange would take a significant amount of time to garner the banking details of thousands of people. Detailing the same, Wall tweeted,

With Bitcoin already in a slump, the scare around Mt.Gox funds being dumped has created unrest in the industry. Wall, however, seems to have been working towards restoring peace among the crypto community.