Mt. Gox creditor Eric Wall categorically denied rumors that the entire 140,000 BTC provided to creditors would shortly be sold on the market. In reality, the payment will be made over the course of several months.
One of the Mt. Gox incident's creditors denied rumors that the now-defunct exchange paid back the entire amount of roughly 140,000 BTC all at once.
Eric Wall tweeted on Aug. 28 that the payout will occur in tranches, steadily being doled out over time. He clarified that Mt. Gox is not distributing “any coins this week, or the next week, or the week after that.”
Wall added that although there has been no formal confirmation of the timing of the repayments, some persons have elected to sell their rights to Fortress.
Additionally, creditors have not yet been given the chance to register the addresses to which the assets will be delivered.
He did mention that a notice would soon be issued allowing creditors to enter their banking information, which would be the first step in starting the repayment plan.
Wall called on the cryptocurrency community to block accounts that claimed that the handouts were being made because he was concerned about the false stories that were circulating on social media. Others were discussing the inaccurate information, stressing that it was a lengthy process.
Crypto influencer Danny Devan claimed that because the assets would be distributed over months, there would not be "crazy selling" throughout the repayment process, which is just getting started.
Devan was pessimistic on the massive volume of BTC being sold and anticipated that the bear market would last for a considerable amount of time.
Many details of the payback process are made clear in the official document concerning it. Creditors have the option of getting a lump sum payment early. It requests that creditors sign up as soon as feasible on the system.
Regarding the release of the assets, the court document says, “Following discussions with the Court and in accordance with the Rehabilitation Plan, the Rehabilitation Trustee plans to set the Assignment, etc. Restriction Reference Period from approximately the end of August this year until all or part of the repayments made as initial repayments is completed for safe and secure Repayments.”
In November 2021, the repayment plan received final approval, much to the satisfaction of the creditors. One of the most infamous instances in the history of the cryptocurrency industry comes to a close with the recovery of assets. The crash of LUNA and its UST stablecoin recently matched its significance as a warning to the cryptocurrency industry.