Some creditors have gradually received compensation. How will this "windfall" be handled? More than half of the people chose..
The highly anticipated Mt. Gox compensation work has begun, and some creditors have gradually received their payouts. The way this "windfall" is handled has become a topic of concern for the public.Author: Nancy, PANews
The long-awaited Mt. Gox compensation process has begun, and some creditors have started to receive their payouts. The handling of this "windfall" has become a topic of interest for the public.
Over half of the creditors have been compensated, with more than 140,000 bitcoins still to be distributed
"After more than ten years, I'm not sure if this would really happen, but we finally did it! It has been a long journey, and I'm glad to see that we are finally close to our goal, just a little bit more to go…" said former Mt. Gox CEO Mark Karpelès in a post earlier this month.
As July began, Mt. Gox started repaying creditors in the form of BTC and BCH. However, according to the custodian's documents, the payment times vary across different cryptocurrency exchanges. For instance, Kraken's payment may take up to 90 days, Bitstamp may take 60 days, BitGo will show payments within 20 days, and SBI VC Trade and Bitbank will complete payments within 14 days. Therefore, Mt. Gox creditors may have to wait up to three months to receive BTC or BCH. According to a poll initiated on Reddit, Kraken is the primary choice for creditors among these custodial exchanges, receiving 64.7% of the votes from participants.
Currently, some custodians have received compensation funds for creditors. For example, the Japanese cryptocurrency exchange Bitbank transferred the bitcoins compensated by Mt. Gox to creditors within hours of receiving the payout, without waiting for 14 days. Kraken also recently announced that it has successfully received creditor funds (BTC and BCH) from the Mt. Gox custodian. Although Kraken will distribute these funds as soon as possible, it is expected to take 7-14 days to credit the funds to the creditors' accounts. The amount creditors will receive is determined by the custodian, and Kraken will distribute according to their instructions.
According to a recent notice from Mt. Gox trustee Nobuaki Kobayashi, as of July 16, the trustee has repaid BTC and BCH to over 13,000 creditors, which exceeds half of the previously disclosed approximately 24,000 creditors. CryptoQuant analyst Maartunn also recently disclosed that 36% of Mt. Gox bitcoins have been allocated to creditors. As of July 17, the custodian still holds 140,000 BTC, which will be gradually distributed in the future.
For other creditors who have not yet received compensation, Nobuaki Kobayashi recently reminded that these creditors need to confirm account validity, the exchange's acceptance of the agreement, and complete discussions with the custodian and the exchange to ensure that the repayment can be conducted safely.
A creditor reported unauthorized login attempts on Reddit
However, several Mt. Gox creditors have reported a surge of unauthorized login attempts on their accounts recently. They revealed issues encountered while logging into the Mt. Gox website in the Reddit forum's Mt. Gox creditor subsection "r/mtgoxinsolvency," with screenshots showing numerous unauthorized login attempts on their accounts. Some users are concerned that this could be a "brute force" attack on Mt. Gox creditors, while others believe it may just be a website malfunction. Following these incidents, the Mt. Gox website has entered maintenance mode. An email stated, "Thank you for your patience. Please check back later."
Under passive lock-up with high returns, creditors discuss how to handle their assets
With Mt. Gox's compensation plan reaching up to $9 billion, the market is also concerned about the massive influx of bitcoins. However, CryptoQuant founder Ki Young Ju stated that unlike the German government's sale, Mt. Gox creditors are not forced to sell, so this is not purely a seller's liquidity. This distribution will not end the bullish trend, as these bitcoins are expected to react to market sentiment just like the existing supply. From the recent rebound in bitcoin prices, it appears that the Mt. Gox compensation event has not significantly impacted the bullish trend of bitcoin.
In a Reddit poll titled "Cash Payment or Crypto Payment," 69.3% of participants chose cryptocurrency payment. Given that the price of bitcoin has significantly increased since Mt. Gox's bankruptcy, the passive lock-up returns for creditors are quite substantial, making the handling of this compensation a topic of great public interest.
"Will you tell your wife when you receive bitcoins?" someone joked in a comment on the Reddit forum. From the responses of many creditors, some are still firmly holding, some are worried about tax issues, and others are choosing to cash out to improve their lives.
In a poll initiated by a user asking "What percentage of bitcoin do you plan to sell after payment?" 52.1% of participants chose to sell 0%-10%, 10.8% chose to sell 90%-100%, and the remaining chose to sell between 20% to 90%.
"The Mt. Gox bankruptcy case has taught me some valuable lessons: first, don't sell bitcoins easily; second, be careful with crypto assets stored on exchanges." These creditors hope for greater returns, with some stating that bitcoin is a currency rather than an investment. This sentiment was also reflected in a poll where more than half of users chose to continue holding bitcoin.
Of course, many creditors chose to "cash out" to purchase items like houses and cars. "As the payment gets closer, I'm getting more anxious; I hope to buy a seaside house for vacation soon," and "I've started looking at Tesla and houses I've been waiting for years for…" Many creditors are also conflicted about the timing of selling, with comments like, "Trump supports cryptocurrency; would it be better to sell after he is elected president of the United States?"
For creditors who need to pay crypto taxes upon selling assets, figuring out how to pay taxes is a tricky issue and a significant expense, which has also been a frequently raised question on Reddit. For example, "I am a German resident, so I don't have to pay capital gains tax for holding crypto assets for over a year, but I might move to a country that requires taxes soon. Should I sell my crypto assets now or continue holding?" and "Can I sell bitcoin in the EU? After so long, I no longer have evidence of when I received these bitcoins."
Additionally, some creditors have left anxious messages about not yet receiving their compensation, asking, "Which exchanges have received funds, and which exchanges still have remaining funds? Is there a list that can be published?"
"When bitcoin prices reach $250,000, $500,000, or $1 million, will there be people regretting selling early?" someone also commented, wondering how many stories of missed opportunities will emerge by then?
