Coingape Staff
Bitstamp has announced its commitment to distribute Mt. Gox repayments to creditors as quickly as possible. According to their agreement with the Mt. Gox trustee, Bitstamp has a 60-day window to distribute tokens but aims to compensate investors much sooner.
This announcement follows reports from several Mt. Gox creditors in Japan who confirmed receiving Bitcoin (BTC) and Bitcoin Cash (BCH) compensation through exchange accounts at Bitbank and Kraken. The swift action by Bitstamp provides some clarity on the repayment timeline.
Repayment Process and Exchange Involvement
Bitstamp, one of the exchanges tasked with distributing bitcoin repayments to Mt. Gox creditors, has announced its intention to process these payments as quickly as possible. While the agreement with Mt. Gox trustees allows Bitstamp up to 60 days to distribute the tokens once received, the exchange has stated it is working to reimburse investors promptly.
This announcement sheds some light on the timeline of the Mt. Gox repayments, a topic of significant interest in the cryptocurrency market. The repayment process involves five exchanges, each with different timeframes for distribution after receiving funds from the trustee.
Two Japanese exchanges, Bitbank and SBI VC Trade, have already received and distributed their allocated funds, completing the process within hours. The status of distributions by the remaining three exchanges, Bitstamp, Kraken, and BitGo – is less clear. These exchanges have varying deadlines: Kraken has up to 90 days, Bitstamp up to 60 days, and BitGo up to 20 days to process the payouts.
The timing of when each exchange will receive the bitcoin from the trustee remains uncertain. It’s possible that the remaining bitcoin will be distributed to these exchanges either sequentially or simultaneously in the near future. The scale of the remaining repayments is substantial. While 47,229 bitcoin (valued at approximately $2.7 billion) has been sent to Bitbank and SBI VC Trade, the trustee still has 94,771 bitcoin (worth about $5.4 billion) left to distribute.
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Market Impact and Related Events
The commencement of Mt. Gox repayments has created a stir in the cryptocurrency market, coinciding with other significant events. Bitcoin’s price dropped below $54,000, sparking fears of further declines, though it has since recovered to around $57,000. Large bitcoin transfers have been observed, including 1,157.1 BTC ($63.57 million) to a new address and 1,544.67 BTC ($84.87 million) to Bitbank.
Additionally, the German government has been selling Bitcoin to various entities, including crypto market makers and exchanges, contributing to the recent price volatility. This selling spree, along with the Mt. Gox repayments and other market factors, has led to increased uncertainty and price fluctuations in the crypto market. The current Bitcoin price stands at $57,323.01, having experienced lows of $54,000 in recent days.
Also Read: Solana Outperforms Ethereum Amid $441M Money Inflow Into Crypto
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
