Bitstamp will commence fund transfers to Mt. Gox creditors on Thursday, nearly a decade after the hack that led to the downfall of the Mt. Gox exchange. This marks a significant step towards reimbursing those affected by one of the most notorious incidents in cryptocurrency history.
Distribution Details and Exclusions
The initial transfer includes assets like Bitcoin (BTC), Ether (ETH), and Bitcoin Cash (BCH) from the exchange’s trustees. However, customers in the U.K. will not be included in this first distribution round. Some creditors have already received their assets through Kraken, setting a precedent for these upcoming transfers.
Impact on Crypto Markets
The anticipation of nearly $9 billion worth of assets entering the market has affected cryptocurrency prices. Bitcoin experienced a slight decline, reaching an intra-day low of $65,491. Similarly, Bitcoin Cash saw a 1.75% drop. These fluctuations are attributed to investors’ fears of large sell-offs due to the influx of reclaimed assets.
Bitstamp’s Role in Reimbursement
Bitstamp is facilitating compensation for the 20,000 former Mt. Gox users who lost funds in the hack. These customers are expected to receive their assets within the next one to two weeks. Given the current Bitcoin value of around $66,800, compared to approximately $600 at the time of Mt. Gox’s insolvency, many creditors stand to make significant profits.
Jean-Baptiste Graftieaux, Global Chief Executive Officer at Bitstamp, highlighted the importance of security and compliance in cryptocurrency exchanges. He stated, “As the world’s longest-running crypto exchange, and one of the most trusted, we’re proud to play our part in making the Mt Gox investors whole. It’s a testament to Bitcoin’s value as an asset that, although the Mt Gox investors should never have been unable to access their tokens, many will make a serious profit.”
Bitstamp has assured that recipients will gain full control of their assets within a week after the funds are received.
Background of Mt. Gox
Mt. Gox, based in Tokyo, Japan, was once the leading Bitcoin exchange, handling over 70% of all BTC transactions. The exchange halted withdrawals in February 2014 after discovering illicit activities in clients’ digital wallets. Shortly after, Mt. Gox declared bankruptcy, announcing the loss of 850,000 Bitcoins—approximately $450 million at the time—to hackers. This incident remains one of the largest losses in cryptocurrency history.
The upcoming fund transfers by Bitstamp provide long-awaited relief for Mt. Gox creditors. As these assets re-enter the market, the impact on cryptocurrency prices will be closely watched. Bitstamp’s role underscores its commitment to security and trust within the crypto community.
