Original author: Nancy, PANews
The much-anticipated Mt.Gox compensation work has begun, and some creditors have received compensation one after another. How to deal with this windfall has become a topic of concern to the outside world.
More than half of the creditors have been compensated, and there are still more than 140,000 bitcoins to be distributed
“After more than a decade, I wasn’t sure if this would actually happen, but we finally did it! It’s been a long journey, and I’m happy to see that we’re finally getting closer to our goal, with only a little distance left to go…” Mark Karpelès, former CEO of Mt. Gox, said in a post earlier this month.
Since July, Mt. Gox has started to repay creditors in the form of BTC and BCH. However, according to the custodian documents, the payment time of different crypto exchanges varies. Kraken may take 90 days to pay, Bitstamp may take 60 days, BitGo will show payment within 20 days, and SBI VC Trade and Bitbank will complete payment within 14 days. Therefore, Mt. Gox creditors may have to wait up to three months to receive BTC or BCH. According to a poll launched on Reddit, among these custodial exchanges, Kraken is the main choice of creditors, receiving 64.7% of the votes of participants.
Currently, some custodians have received compensation funds from creditors. For example, after receiving the Bitcoin compensation, Japanese crypto exchange Bitbank transferred the Bitcoin paid by Mt. Gox to creditors within a few hours without waiting for 14 days; Kraken also recently issued a notice stating that the platform has successfully received creditor funds (BTC and BCH) from Mt. Gox custodians. Although Kraken will distribute these funds as soon as possible, it is expected to take 7-14 days to credit the funds to the creditors accounts. The amount that the creditors will receive is determined by the custodian, and Kraken will distribute it according to its instructions.
According to a recent notice issued by Mt. Gox trustee Nobuaki Kobayashi, as of July 16, the trustee has repaid BTC and BCH to more than 13,000 creditors, which is more than half of the previously disclosed 24,000 creditors. CryptoQuant analyst Maartunn also recently published an article disclosing that 36% of Mt. Goxs Bitcoin has been distributed to creditors. As of July 17, the custodian still holds 140,000 BTC, which will be gradually distributed in the future.
As for other creditors who have not received compensation, Nobuaki Kobayashi recently reminded that these creditors need to confirm the validity of their accounts, the exchanges acceptance of the agreement, the completion of discussions between the custodian and the exchange, and confirmation that repayment can be made safely.
A creditor reported unauthorized login attempts to his account on Reddit
However, several Mt. Gox creditors reported a large number of unauthorized login attempts to their accounts recently. They disclosed the problems they encountered when logging into the Mt. Gox website in the Mt. Gox creditors sub-forum r/mtgoxinsolvency on the Reddit platform. The screenshots showed that their accounts had a large number of unauthorized login attempts. Some users are worried that this may be a brute force attack on Mt. Gox creditors, but others think it may just be a website malfunction. After the relevant incident, the Mt. Gox website has entered maintenance mode. The email reads: Thank you for your patience. Please check back later.
With high returns from passive lock-up, creditors discuss why they should dispose of their assets
As Mt. Goxs $9 billion compensation plan begins, the market is also concerned about the inflow of a huge amount of Bitcoin. However, CryptoQuant founder Ki Young Ju wrote that unlike the German governments sale, Mt. Goxs creditors were not forced to sell, so this is not pure seller liquidity. This distribution will not end the bullish trend, because these Bitcoins are expected to respond to market sentiment like the existing supply. Judging from the recent rebound trend of Bitcoin, the Mt. Gox compensation incident has not had much impact on the bullish trend of Bitcoin.
According to the Cash or Crypto Payment vote initiated by Reddit, 69.3% of the participants chose cryptocurrency payment. Since the price of Bitcoin has increased significantly compared to when Mt. Gox went bankrupt, the passive lock-up income of creditors is very considerable. How to deal with this compensation is a topic of great concern to the outside world.
Will you tell your wife when you receive the Bitcoin? someone jokingly left a message on the Reddit forum. Judging from the responses of many creditors, some are still holding on firmly, some are worried about tax issues, and some choose to cash out to improve their lives.
In a poll initiated by a user asking What percentage of your Bitcoin do you plan to sell after payment?, 52.1% of participants chose to sell 0%-10%, 10.8% chose to sell 90%-100%, and the rest chose to sell 20% to 90%.
The Mt. Gox bankruptcy case taught me some valuable lessons. First, do not sell Bitcoin easily, and second, be careful with crypto assets stored in exchanges. These creditors hope to get a bigger return, and some even say that Bitcoin is a currency rather than an investment. This was also reflected in a certain vote, with more than half of users choosing to continue holding Bitcoin.
Of course, many creditors choose to lock in profits to purchase items such as houses and cars. As the payment is getting closer, I am getting more and more nervous. I hope to buy a house by the sea as soon as possible and go there for vacation. I have started to pay attention to Tesla and the house I have been waiting for a few years. ...... And many creditors are struggling with the timing of selling. Trump supports cryptocurrency. Would it be better to sell it after he is elected as the US president?
For creditors who sell assets and need to pay crypto taxes, how to pay taxes is a thorny issue and a considerable expense, which is also a problem that appears frequently on Reddit. For example, I am a German resident, so I dont have to pay capital gains tax on crypto assets held for more than a year, but I may move to a country that needs to pay taxes soon. Should I sell my crypto assets now or continue to hold them?, Can I sell Bitcoin in the EU? Its been so long and I have no evidence to record when I got these Bitcoins.
In addition, there are creditors who have not received compensation and left anxious messages, Which exchanges have received funds, and which exchanges have remaining funds? Is there a list that can be published?
“When the price of Bitcoin reaches $250,000, $500,000, or $1 million, will anyone regret selling it too early?” Someone else left a message asking, how many stories of people selling too soon will there be by then?
