Return date for 150,000 BTC from Mt. Gox hack is approaching

The deadline for submitting a rehabilitation plan for Mt Gox creditors is October 15, 2020.

Some believe that the repayment of 150,000 BTC and the resulting sale could have a negative effect on the Bitcoin market.

Others are dismissive, expecting the court to announce more delays and the repayment to be phased in over time

The Trust Project is an international consortium of news organizations based on transparency standards.

The deadline for submitting a rehabilitation plan for Mt. Gox creditors, set for October 15, 2020, is fast approaching. As such, speculation is growing about what this means for victims of the infamous hack and for the Bitcoin market itself is growing.

In a document released on June 30, the Tokyo District Court issued an order to extend until October 15 the deadline for submitting the rehabilitation plan in order to repay creditors.

After many years, dozens of trials and a plan to revive the exchange, the rehabilitation plan was put in place to compensate the victims. The court has extended this deadline many times before, but if it does not do so again, that is when it will become clear how and when creditors might expect to be repaid.

To date, more than 1,000 creditors have claimed more than 150,000 bitcoins , or about 15% of all funds lost in the hack. In a tweet published on October 5, the famous crypto investor „Mr. Whale expressed concerns about the implications of a refund:

On October 15, 2020, nearly 150,000 # Bitcoin’s are expected to be returned to customers who were victims of the 2013 Mt. Gox exchange hack.

Although this deadline has been pushed back many times, it is important to take into account the catastrophic impact it could have on the markets

Assuming a possible large-scale repayment, Mr Whale said: „If 150,000 BTC are sold in the market, it will lead to a sharp drop and fear will quickly spread to the markets.“ Considering the price increase since 2014, he concluded, “I guess once they get back, many will start taking profits with a return on investment above 2,600%.”

The tweet sparked debate, but no clear consensus. Some commentators doubted that a return would happen all at once, some predicted another delay, while others downplayed the issue by highlighting the cost of returned BTC relative to current trading volume.

In terms of selling pressure, 150,000 BTC at current prices is close to $ 1.5 billion. For reference, the trading volume as of October 4 was around $ 17 billion .

In the end, Mt. Gox’s creditors appear to have an even longer wait in store. In a letter posted on Reddit, a victim revealed that court correspondence discouraging people from participating in proceedings over COVID-19 proves further delays are imminent. The next creditors‘ meeting is scheduled for October 7 at the Tokyo District Court.