Bloomberg reporter Matt Leising tweeted on Friday that Mt.Gox creditors reached an agreement with the company.
He wrote on Twitter, “CoinLab stated that creditors can claim 90% of Mt.Gox’s claims from Mt.Gox, subject to creditors’ acceptance. CoinLab and Mt.Gox creditors have reached an agreement on Bitcoin claims.”
It is estimated that a total of 137,891 BTC (worth approximately US$4.9 billion) will be allocated to Mt.Gox users. According to a previous report by “Betwee”, Mt.Gox was once the world’s largest Bitcoin exchange. The exchange was closed due to a hacker attack in February 2014 and filed for bankruptcy protection.
Since 2014, the price of Bitcoin has risen sharply. If these creditors receive the compensation, they may be eager to sell to lock in profits, which may bring selling pressure to the entire market.
CoinLab cooperated with Mt.Gox as early as November 2012 to provide services to exchange customers in North America. But their cooperation soon went wrong. In 2013, Mt.Gox was brought to court by CoinLab for alleged breach of contract agreement. As CoinLabs increased the original claim amount from 75 million US dollars to 16 billion US dollars, the civil compensation process was postponed for many years.
In 2019, Mark Karpeles, the former CEO of the Mt.Gox exchange, said that the biggest obstacle to creditor claims is the US company CoinLab.
He mentioned, “The actual progress now depends on the specific creditor of CoinLab. CoinLab is actually a company used by Mt.Gox to cooperate with American customers. But it turns out that CoinLab did not obtain the corresponding license. After Mt.Gox went bankrupt, CoinLab filed a new $16 billion claim with Mt.Gox, which completely hinders all progress.”
However, as the agreement is reached, this obstacle will no longer exist. The bitcoins acquired by creditors may flow into major exchanges for selling, which may even end the bull market in the past few months.
According to comparison data, as of press time, the price of Bitcoin has fallen to around 35,000 US dollars, a daily drop of nearly 10%. Bitcoin’s previous bull market endings are somewhat related to Mt.Gox. Whether history will repeat itself this time, we will wait and see.
