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ZyCrypto – Mt. Gox Creditors Dispel Fears of a Massive Bitcoin Sale

ZyCrypto Mt. Gox Creditors Dispel Fears of a Massive Bitcoin Sale

Several creditors of Mt. Gox have debunked rumors that the exchange was planning to release a large cache of Bitcoins owing to creditors later this month, which could have resulted in a major dump of the cryptocurrency.

There have been numerous reports over the past week claiming that the now-defunct cryptocurrency exchange had intended to pay back their original investors. Concerned investors sold Bitcoins in the face of the rumors, sending shockwaves across the cryptocurrency community at a time when the market was already in a downward spiral.

Eric Wall, one of many Mt. Gox creditors, dispelled the rumors in a series of tweets, clarifying that there will not be a dump of 137,000 BTC, as had been hinted at by many Crypto Twitter influencers. Wall claims that creditors will have to wait longer since the exchange has not yet completed the repayment infrastructure required to transfer the coins.

This week, next week, or the week after that, MtGox will not be releasing any coins. Wall declared, “I’m a creditor at MtGox.” The repayment system is not operational at this time. There is presently no way to choose an exchange to which you would like your Bitcoin or Bitcoin Cash delivered. Payments will also be made in stages.

The original BTC investor pushed back, arguing that there was no official deadline for the repayment despite what others have said. Similar to the accusations of other Mt. Gox creditors, Marshall Hayner stated that they were nowhere near to obtaining their bitcoin. Even though it was first thought that Wall and Hayney might sell up their coins, they have now assured creditors that they had no plans to do so.

“Most individuals are like me in that we have no plans to sell it. You can’t put any stock in what Twitter “influencers” tell you,” Hayner warned.

Some investors worry that a rapid payout of the assets could cause a black swan event for the cryptocurrency market, despite the fact that Mt. Gox creditors are still more than 400% ahead since the exchange ceased operating in 2014. Others, however, are of the opinion that the current sell-off in the crypto market may have actually encouraged creditors to hang onto their coins and perhaps even add more.

In accordance with the Mt. Gox website, the rehabilitation process for Mt. Gox creditors is ongoing. Nobuaki Kobayashi, the Rehabilitation Trustee appointed by the Tokyo District Court, wrote a letter to the exchange’s creditors last month alerting them that he was “preparing to start repayments” on November 16, 2021. The trustee also asked that they submit payment information through the Mt. Gox claims portal. He did not, however, specify a time frame for when these payments are due.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.