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**$9 Billion Mt. Gox Bitcoin Earthquake: Impact on Market Predicted by Experts**
After a decade of anticipation and a staggering 10,000% surge in Bitcoin prices, creditors of the defunct Japanese exchange Mt. Gox are finally poised to reclaim their losses. Following its 2014 bankruptcy triggered by a massive hacking incident, Mt. Gox is set to reimburse its creditors, who have shown remarkable patience.
In 2011, the exchange suffered a hack that resulted in the loss of 950,000 Bitcoins, significantly undervalued compared to today’s rates. About 140,000 of these Bitcoins have since been recovered, translating to approximately $9 billion in today’s market value awaiting distribution to rightful owners.
Among the claimants is Gregory Greene of Illinois, who initiated a class-action lawsuit against Mt. Gox and its former CEO after finding $25,000 worth of Bitcoin frozen in his account. With Bitcoin’s price skyrocketing from $600 in the past to over $60,000 currently, Greene’s initial investment has ballooned to approximately $2.5 million—a remarkable 10,000% gain. The exact sum Greene will receive from the forthcoming payments, expected to commence in July, remains undisclosed.
John Glover, Chief Investment Officer at cryptocurrency lender Ledn, anticipates a historic windfall for creditors. He noted, “Many will undoubtedly withdraw their funds, celebrating their escape from the Mt. Gox bankruptcy as their best investment ever.”
Mt. Gox, an abbreviation for “Magic: The Gathering Online Exchange,” shut down in February 2014 amid a series of security breaches. The company attributed the disappearance of Bitcoins to a flaw in BTC’s structure, suggesting hackers may have illicitly moved coins from user accounts, leaving customers without valid transaction records.
Recently, the court-appointed trustee overseeing Mt. Gox’s bankruptcy announced plans to distribute assets to approximately 20,000 creditors starting next month. Payments will be made in a combination of Bitcoin and Bitcoin Cash, an early BTC fork.
Luke Nolan, an Ethereum researcher at CoinShares, highlighted that creditors prefer receiving repayments in the same asset type due to potential tax implications. He explained, “Accepting payments in cryptocurrency can help mitigate capital gains taxes and preserve future price appreciation.”
Glover added that opting for cryptocurrencies allows creditors to avoid substantial tax liabilities, suggesting some might use their BTC holdings as collateral for borrowing dollars instead of selling outright.
*This article does not constitute investment advice.*
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