Mt. Gox Debunks Bitcoin Dump Rumors, Announces Phased Repayment Plan

Mt Gox, a Japanese crypto trading company, has denied rumors of a massive Bitcoin dump. Despite plans for staged payments to creditors, no official schedule has been announced. According to Eric Wall, a creditor, rumors of a 1370,000 BTC dump are false, and payments will occur gradually through an approved crypto exchange. Creditors prefer holding Bitcoins over selling them, despite current market conditions.

Mt. Gox Debunks Rumors of Massive Bitcoin Dump, Announces Staged Repayment Plan

Jakarta, Indonesia - Japanese crypto trading company Mt. Gox has vehemently refuted allegations circulating online that it plans to unleash a colossal dump of Bitcoins into the market. Rumors had spread, claiming that Mt. Gox intended to distribute hundreds of thousands of Bitcoins to its creditors, triggering fears of a significant market selloff.

In response to these speculations, Mt. Gox has clarified that it intends to reimburse creditors in stages, rather than a single, massive distribution. The company has yet to disclose an official schedule for the commencement of Bitcoin (BTC) payments to creditors.

"The retrial payment system has not yet gone live," tweeted Eric Wall, a Mt. Gox creditor, dismissing the rumors as baseless. "No payments have been made."

Echoing Wall's sentiment, Torbjørn Bull Jenssen, the former CIO of cryptocurrency investment firm Arcane Assets, stated that repayments would be executed gradually over a period of months, allaying concerns about an immediate, large-scale selloff.

The repayments are anticipated to be processed through an undisclosed, approved crypto exchange. Creditors have expressed a preference for receiving their Bitcoins rather than selling them in the current bearish market conditions.

The Mt. Gox saga began nearly a decade ago when the company abruptly suspended operations after admitting to the theft of hundreds of thousands of Bitcoins. What ensued was a protracted legal battle that has continued to this day.

In early 2023, Mt. Gox's trustee, Nobuaki Kobayashi, announced plans to initiate repayments to creditors. A July 6 document indicated that late August would serve as a reference period for early fund distributions.

"The Limiting Reference Period from around the end of August this year until all or some of the retrial payments made as an initial payment are complete for a safe and secure Repayment," Kobayashi stated, as quoted by CryptoPotato.

The rumors circulating on social media, alleging that Mt. Gox would release 1370,000 Bitcoins to creditors and subsequently sell them, have been categorically denied by the company. Such a large-scale release, if executed, could significantly impact the price of BTC, which has been struggling to maintain a value of $20,000 per coin.

The refutation of these rumors serves as a cautionary tale against the spread of misinformation and fear-mongering in the cryptocurrency industry. Mt. Gox's commitment to a structured and secure repayment plan ensures that creditors will receive their funds without triggering undue market volatility.