- Mt. Gox Investment Fund won’t sell Bitcoin received in the September payout.
- The fund will take an early payout instead of waiting for lawsuits to settle.
- The exact amount of Bitcoin the Investment Fund will receive is unknown, and other creditors’ reaction to the decision is uncertain.
The Mt. Gox Investment Fund, which was the largest creditor of the failed Mt. Gox cryptocurrency exchange, has made a surprising decision not to sell its Bitcoin.
As the bankruptcy trustee of the exchange prepares to distribute the funds to creditors, the Investment Fund has opted to take the early payout in September, rather than waiting for all the lawsuits to be settled.
The payout will consist of about 70% Bitcoin and 30% cash, but the exact amount of Bitcoin that will be received by the Investment Fund is yet to be disclosed.
The decision not to sell Bitcoin has eased the concerns of crypto investors who have been worried about a potential market crash due to a large influx of tokens hitting the market as claims are settled. The recovery of Bitcoin has been slowing down, and there has been concern that a sell-off could harm the market’s stability.
Mt. Gox was once the largest Bitcoin exchange in Tokyo, but in 2014 it lost customer assets and went bankrupt. The bankruptcy trustee held 141,686 Bitcoin and cash and Bitcoin Cash coins in September 2019, which are currently worth around $3.1 billion.
The Investment Fund, which purchased claims against the exchange before it went bankrupt, will receive 90% of what can be collected in September.
The deadline for other Mt. Gox creditors to decide between taking the September payout or waiting for a bigger share of their claims is March 10. The reaction of other creditors to the Investment Fund’s decision remains to be seen, but for now, it seems that the cryptocurrency market has been given a welcome reprieve from a potential market crash.
In other news, the Russian Association of Crypto Industry and Blockchain (RACIB) sent an open letter to President Vladimir Putin asking him to act quickly on cryptocurrency laws. The group, which is made up of crypto and blockchain fans from all over Russia, has criticized the government’s slow way of regulating the market and asked for experimental legal systems to help the crypto sector grow.
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