Last month, the bankrupt crypto exchange Mt. Gox announced it would begin repaying its creditors in July.
According to WOO X COO Willy Chuang, the long-term effects of these repayments might not be as significant as some predict.
Mt. Gox was once a dominant force in the crypto world, managing over 70% of all bitcoin transactions in its early days.
On Friday, Mt. Gox started returning funds to its customers, concluding nearly a decade-long wait following the 2014 hack that led to its collapse.
Initially, Mt. Gox was the leading crypto exchange globally, accounting for over 70% of bitcoin (BTC) transactions. The infamous hack resulted in the loss of approximately 740,000 bitcoins.
The recent announcement has added selling pressure to bitcoin and the broader crypto market. Bitcoin dropped to $53,600, its lowest in five months, causing over $580 million in bullish bets to be liquidated. By mid-morning in Europe, the world's largest digital asset remained under $55,000, according to CoinDesk Indices data, down from nearly $63,000 at the start of the week.
"Mt. Gox moved 47,228 BTC, signaling the start of their repayment process, which has caused some market fear due to the large potential sell-off ... However, it's worth noting that despite these concerns, the long-term impact may be less severe as the market gradually absorbs the selling pressure," said Willy Chuang.
While some customers might have to wait 60-90 days to receive their funds, former CEO Mark Karpeles assured CoinDesk on X that these are worst-case scenarios.
"Those are deadlines linked to the number of transfers to process, each exchange might have a slightly different internal policy and decide to credit everyone later than sooner or sooner than later," he said.
Exchanges authorized by the trustee to handle repayments include Bitbank, BitGo, Bitstamp, Kraken, and SBI VC Trade, a Japanese exchange.
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