Mt. Gox Top Creditor Opts for Early Withdrawal Option: Report
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The top Mt. Gox creditor opted for an early withdrawal in Bitcoin (BTC) rather than waiting longer for an even bigger payment.
The Mt. Gox Investment Fund, the largest lender to the defunct crypto exchange, has reportedly decided to take its chances with a smaller but earlier payout rather than waiting for all legal processes to be settled. This means the creditor will be paid by September of this year, rather than potentially waiting another nine years before getting their money back.
According to Bloomberg, opting for the earlier payout means that the creditor will only receive 90% of the amount due and the trustee will not have to sell tokens to acquire fiat funds for payment, since the creditor has also opted to pay in BTC . This will allay market concerns as token sales of this magnitude could potentially have a negative impact on BTC’s market and even affect the broader crypto market.
Other creditors of the exchange also have until March 10 to decide whether to wait for a larger percentage of the payment or take advantage of the earlier repayment in September.
Related: Mt. Gox Creditors Deny Massive Bitcoin Dump Rumors
On Jan. 6, Mt. Gox trustee Nobuaki Kobayashi urged creditors to complete the necessary steps before the deadline, writing that creditors who fail to do so will be unable to receive their funds or bring documents to the bank must be headquartered in Japan and receive payments in Japanese yen.
Mt. Gox used to be considered the largest cryptocurrency exchange in the world before going bankrupt in 2014 after stealing 750,000 BTC from its customers and 100,000 of its own Bitcoin. At the time of the incident, the funds were only worth around $473 million. However, at current market prices, it’s worth around $20 billion.
