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Chinatimes.net.cn Reporter Zhao Yi, Shanghai
Since the collapse of the Mt. Gox exchange, creditors have been waiting for 10 long years. On June 24th, the Mt. Gox trustee announced that the repayment of Bitcoin (BTC) and Bitcoin Cash (BCH) would begin in early July 2024. As of June 24th, the Mt. Gox trustee held approximately 140,000 bitcoins, valued at around $9.26 billion.
The substantial BTC repayment plan has become the “Sword of Damocles” hanging over the cryptocurrency market. According to Liu Chunsheng, an associate professor at the Central University of Finance and Economics, the repayment may lead to a significant sell-off of tokens, potentially causing market pressure and price declines for Bitcoin and other related tokens.
Mt. Gox was once the world’s largest Bitcoin exchange, headquartered in Tokyo, Japan. Founded in 2010 by Jed McCaleb and later acquired by French developer Mark Karpeles in 2011, it became a leading Bitcoin trading platform. However, in 2014, Mt. Gox suddenly announced a halt to all Bitcoin withdrawals, citing the need to streamline currency flows. This was followed by a revelation of a massive hacking incident, resulting in the theft of 850,000 bitcoins valued at about $450 million at the time.
After filing for bankruptcy in 2018, Mt. Gox initiated a rehabilitation process to compensate affected creditors. The recent announcement of the repayment plan has brought some hope for the damaged investors, but also highlights the vulnerability of the cryptocurrency market’s infrastructure.
K33 Research, a cryptocurrency research organization, warned that the Mt. Gox repayment might create selling pressure, but it may not significantly impact Bitcoin prices. Meanwhile, investor confidence and the market’s adaptability to large-scale Bitcoin movements will be enhanced, providing a solid consensus foundation for long-term stability.
Following Mt. Gox’s bankruptcy, another significant blow to the cryptocurrency market was the collapse of FTX in 2022. While creditors are expected to receive compensation, these bankruptcy incidents have cast a shadow over the cryptocurrency market, raising concerns about the security and regulation of cryptocurrency exchanges.
In light of these events, experts emphasize the importance of strengthening exchange regulation, improving laws and regulations, and enhancing market transparency to safeguard the safety of the cryptocurrency market. Investors need to exercise caution in their investment decisions, conduct thorough investigations of exchange security, and choose reputable and well-established exchanges for investment.
The robust regulatory policies reflect the regulatory agencies’ determination to promote the standardized development of the cryptocurrency market and protect investors’ legitimate rights and interests. This ongoing trend underscores the importance of enhancing compliance, internal control, and risk management within cryptocurrency exchanges while emphasizing investor protection and market transparency globally.
Editor: Xu Yunqian Chief Editor: Gong Peijia
