Mt. Gox top creditor goes with early payout option: Report
Biggest lender Mt.Gox has opted to get an early payout in bitcoin (BTC), choosing not to wait any longer for an even larger payment.
Investment fund Mt.Gox, the largest lender to the defunct cryptocurrency exchange, is reportedly decided take a risk with a smaller but earlier payout, rather than waiting until all legal processes are resolved. This means the lender will be paid by September of this year instead of having to wait another nine years before getting their funds back.
According to Bloomberg, opting for an early payment means the lender will only take 90% of the amount owed, and the bankruptcy trustee does not need to sell tokens to receive fiat funds for the payment, as the lender has also chosen to pay in BTC. . This will reduce market fears as token sales of this magnitude could potentially have a negative impact on the BTC market, even the broader cryptocurrency market.
The exchange’s other lenders also have until March 10 to decide whether they want to wait for a higher repayment rate or take an early repayment in September.
Mt.Gox Lenders Deny Massive Bitcoin Dump Rumors
On January 6, Mt.Gox trustee Nobuaki Kobayashi urged lenders to complete the necessary actions before the deadline and wrote that lenders who fail to do so will not be able to receive their funds or will have to go through the process of filing with the head office in Japan and receiving payments in Japanese yen.
Mt.Gox used to be considered the largest cryptocurrency exchange in the world before it went bankrupt in 2014 after 750,000 BTC of its customers and 100,000 of their own bitcoins were stolen. At the time of the incident, the funds were only worth about $473 million. However, at current market prices, it is worth about $20 billion.
Credit : cointelegraph.com