The defunct crypto exchange Mt. Gox has announced that it will start distributing assets stolen from clients during the 2014 hack beginning in July 2024, following years of postponed deadlines. The exchange is set to return over 140,000 Bitcoin to victims, a move that could add significant selling pressure to both Bitcoin (BTC) and Bitcoin Cash (BCH) markets.

Distribution Details

In a statement posted on the Mt. Gox website, Rehabilitation Trustee Nobuaki Kobayashi confirmed the start of repayments. “The Rehabilitation Trustee has been preparing to make repayments in Bitcoin and Bitcoin Cash under the Rehabilitation Plan,” Kobayashi stated, adding that repayments will commence in the first week of July 2024. Due diligence and certain safety steps will be required before the payments can proceed.

Market Impact

The impending repayments are largely considered to add selling pressure to BTC markets. Early investors are set to receive assets at values significantly higher than their pre-2013 entry points, making them likely to sell at least part of their holdings. Following the announcement, Bitcoin prices dropped from over $62,300 in early Asian hours to under $62,100, according to CoinGecko data.

Historical Context

Mt. Gox was once the world’s leading crypto exchange, handling over 70% of all Bitcoin transactions in its early years. However, in early 2014, hackers attacked the exchange, resulting in the loss of an estimated 740,000 Bitcoin, worth about $15 billion at current prices. This hack was the largest of several attacks on the exchange between 2010 and 2013.

Recent Developments

In May 2024, Mt. Gox moved over 140,000 BTC, worth approximately $9 billion, from cold wallets to an unknown address in 13 transactions. This marked the first on-chain wallet movements in five years. Trustees have been working on a repayment plan for several years and received a deadline of October 2024 from a Tokyo court last year.