Bitcoin crashes 7% as Mtgox announced repayment plan
MtGox e-mail to the MtGox creditors acted as a catalyst to dump the trade price of the majority of the flagship crypto assets within half an hour.
MtGox was a popular Bitcoin exchange launched in 2010. In early 2014, this was top in the world in terms of total Bitcoin transaction volume but in the same period, the exchange was exploited by some unknown hacker. The executives of this exchange tried to manipulate the actual transaction data to hide the hacking incident but many users reported that their funds disappeared from the platform. Later all the investigations disclosed that MtGox was also involved in money laundering activities as well as trying to manipulate the exchange’s customers’ transactions.
Currently, this exchange is holding nearly 135,890 BTC under the control of MtGox trustee.
Today, just a few hours ago, the MtGox trustee sent an e-mail to the MtGox creditors to confirm indirectly that the exchange started the repayment process.
Email read:
“This email is sent to you/your company to notify you/your company of the launch of the ‘Repayment Status’ and ‘Repayment Status Details’ display function.”
When we (the Bitcoinik team) checked this detail manually then found the status: “There are no details on Repayment Status now. Any updates will be displayed.”
This means, MtGox started its repayment procedure or very soon will will start.
When people came to know about these activites, they got into panic and suddenly started to sell Bitcoins & Ethereum.
Because of high pressure sell, the trade price of Bitcoin crashed from $44k to $41k, net 7% within half an hour.
In the same time frame, the trade price of Ethereum also crashed by 6% but suddenly recovered to some degree.
Now it will be interesting to see what will happen if MtGox creditors confirm that they accepted their Bitcoins.
Some people believe that nothing will happen because not all the MtGox creditors will sell the received money. On the other hand, some people claimed that almost all the creditors will sell their received Bitcoin funds Because the trade price of Bitcoin is high & people will try to invest again in Bitcoin but at a discounted price.
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