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Highlights
- Japan-based Mt. Gox was at one point world’s largest Bitcoin exchange deal with 70% of global transactions.
- As the bankruptcy case in Japan comes to an end after years of battle, investors would see approximately US $6 billion (£4 billion) worth of bitcoin (BTC) being distributed among creditors.
- In case the civil rehabilitation plan is voted down, Mt. Gox plans to settle creditors claim by using Bitcoin’s price at US $450 per coin.
Investors around the globe are keen to know about the changes in their Bitcoin portfolio. Thanks to the Japan’s leading exchange Mt. Gox insolvency case, which end after years of battle and litigation, investors are expected to see approximately US $6 billion (£4 billion) worth of bitcoins (BTC) being distributed as part of the rehabilitation plan.
This would mean, a few the recipients will become the new Bitcoin millionaires overnight. The resolution of the Mt. Gox bitcoin exchange insolvency case would see as many as 36,800 creditors getting their reimbursement or payouts in the form of Bitcoins. Investors would now be keeping their fingers crossed so that the market sees another upward trend and Bitcoins gain immensely in the coming weeks.
Mt. Gox Insolvency case
Japan-based Mt. Gox was at one point world’s largest Bitcoin exchange handling 70% of global transactions. However, the company had to file for bankruptcy following a series of hack, which several investors lose their money in 2014. It is estimated that approximately 850,000 Bitcoin disappeared, of which, the company has been able to recover 200,000 BTC, which will be returned to the creditors.
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The holders are expected to get their money back either in the form of 2014 fiat currency prices or in the form of Bitcoin, assuming that the civil rehabilitation plan is passed.
Mt. Gox plans to initiate a timeline after 20 October, for the release of payment to the creditors. As the BTC prices have soared substantially since 2014, the investors are preferring their payouts in Bitcoins.
Impact on UK investors
Investors in UK, like others around the globe, have been quite vocal about investing in cryptocurrencies. Many believe that that the cryptocurrencies are the future of currencies and with such a pump, many investors who have invested through the exchange could see become overnight millionaires.
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As it was one of the biggest cryptocurrency exchanges, it is quite possible that many would have made their investments through the exchange and all of them would now be keeping their fingers crossed that the civil rehabilitation plan is passed on 8 October.
In case, the civil rehabilitation plan is voted down, then Mt. Gox plans to settle creditors claim by using Bitcoin’s price at US $450 per coin as it was the price of BTC at the time of the time of bankruptcy in 2014.
Experts warn of massive fall out
Experts around the globe have warned of major market shock due to the US $6 billion payout. Many experts believe that the market could witness a major Bitcoin dump with investors looking to make the most of their earning received. This could even impact the prices of the Bitcoin fears remain that the overall impact on crypto market could be brutal.
