Defunct Japanese cryptocurrency exchange, Mountain Gox has taken the next steps towards its Bitcoin distribution process to previously affected customers 2014 hack attack. The crypto exchange has delivered mass emails to account holders confirming wallet addresses of individuals eligible for the refund process.
Mount Gox prepares for Bitcoin refunds
Recently, account holders at Mt. Gox reported in a Reddit post that they have received new emails from the crypto exchange regarding an identity verification and confirmation procedure initiated by the exchange.
Mount Gox announced that it has started confirming wallet addresses of users who officially had accounts with the crypto exchange and had successfully completed their identity verification processes. The crypto exchange also revealed that it would distribute Bitcoin (BTC) and Bitcoin Cash (BCH) as part of the refund process to account holders, with the payout ranging from 142,000 BTC to 200,000 BTC.
In addition, Mount Gox announced that the rehabilitation trustee shared customer information with the custodian to facilitate the account verification process. The crypto exchange warned that customers with disabled or frozen accounts may not be eligible for the fund distribution program.
In September 2023, Mount Gox declared one extension of the repayment period from October 2023 to October 31, 2024, attributing the decision to the need for further discussions to ensure proper disbursement of the funds. In December 2023, the crypto exchange experienced a minor hiccup in its payment distribution process after announcing that it had inadvertently spent funds double payments to specific users.
Following the error, Mt Gox urged these users to return the excess funds, warning of possible legal consequences and the possibility of being excluded from the refund plan scheduled for later this year.
This year marks almost a decade since Mount Gox was hit by a hacking attack, resulting in the loss of a whopping 850,000 Bitcoin. Recent developments in the refund process giving hope to former customers of the crypto exchange who were negatively affected by the cyber theft.
BTC price reclaims $40,000 | Source: BTCUSD on Tradingview.com
BTC Faces a $20,000 Crash as Mount Gox Customers Start Selling Off Bitcoin
About 200,000 BTC Currently worth more than $7.7 billion, it is expected to spread through multiple wallet addresses owned by Mt.Gox’s creditors. This raises concerns about the potential impact this Bitcoin distribution could have on the crypto market.
Currently, the refund amount of 200,000 BTC to Mount Gox exceeds the total value of Microstrategy And El Salvador’s Bitcoin holdings, which are among the largest in the world.
Of Bitcoin currently at $39,909, as Mt.Gox account holders receive their refunds and attempt a sell-off to grab their profits, which have grown by a substantial 99,900%, the price of Bitcoin could potentially dip below $20,000. This would be a monumental crash for the cryptocurrency pioneer, sending prices back to half their current market value.
Featured image from Inside Bitcoins, chart from Tradingview.com
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