Mt. Gox Begins Verification for Bitcoin Payout amidst Market Concerns

By: Isha Das

Historic cryptocurrency exchange, Mt. Gox, is moving forward with its Bitcoin repayment process. The defunct Japanese platform, which was shaken by a hack attack in 2014, has begun confirming wallet addresses for users eligible for repayment. The announcement, however, has caused some disturbance in the broader crypto market, with the cost of Bitcoin dropping upon the news.

In recent developments, Mt. Gox account holders announced in a Reddit thread receipt of emails confirming the initiation of an identity verification process by the exchange that aims to identify the rightful owners of accounts. Once verified, the account holders will be entitled to repayment, with the expected total payout to vary between 142,000 to 200,000 Bitcoin (BTC) and Bitcoin Cash (BCH).

Not all users might be eligible for fund distribution, as the company warned that accounts that are frozen or disabled may not qualify. The exchange faced some obstacles in its payment process recently when double payments were unintentionally issued to some users. Following this error, a request was quickly made to the affected parties for returning the excess funds, coupled with warnings of potential legal consequences.

While the repayment process advancement brings hope to many former customers, the distribution of approximately 200,000 BTC, which at present value is worth over $7.7 billion, into the market could potentially lead to a drastic market impact. If the repaid users attempt a sell-off to cash out their increased profits, the value of Bitcoin could crash drastically, potentially under $20,000, which would be half its current value.