Investors are concerned as a bitcoin exchange that crashed ten years ago due to hacking is preparing to give users back tokens valued at billions of dollars.
The insolvent bitcoin exchange Mt. Gox, located in Tokyo, will start returning tokens valued at nearly $9 billion to thousands of its users in a few days. After a string of thefts that cost it between 650,000 and 950,000 bitcoin, or more than $58 billion at today’s exchange rates, the platform shut down in 2014.
On Monday, the court-appointed trustee in charge of the exchange’s bankruptcy proceedings announced that the company’s approximately 20,000 creditors would start receiving payments in early July. Payments will be made in a combination of bitcoin and bitcoin cash, the first cryptocurrency offshoot.
Although this is welcome news for the hack victims who have been waiting years to be fully compensated, last week saw the second-worst weekly decline in the cryptocurrency market as the price of bitcoin dropped to $59,000.
Short for “Magic: The Gathering Online Exchange,” Mt. Gox was once the biggest spot bitcoin exchange in the world, reportedly handling about 80% of all dollar trades for bitcoin worldwide.
When it closed in February 2014, the value of bitcoin was approximately $600.
The price of the biggest cryptocurrency in the world right now is roughly $61,000 per coin. This indicates that users who receive their reimbursement in kind or in their cryptocurrency instead of cash have seen a more than 10,000% increase in value over the previous ten years.
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