Largest Creditor of Bankrupt Mt. Gox Exchange to Hold Onto Returned Bitcoin – Huge Selling Pressure Averted?

09 Mar 2023

By Jaroslaw Adamowski | @jaroslaw-adamowski

As the bankruptcy proceedings of Mt. Gox continue, new developments have emerged regarding the Mt Gox Investment Fund, the exchange's largest creditor. According to reports, the fund has no intentions of selling the tokens it is due to receive later this year.

A person familiar with the fund’s activities who asked not to be identified told Bloomberg that the Mt Gox Investment Fund’s strategy is to hold the digital assets that are scheduled to be returned this October.

Rather than waiting for the completion of all the litigation surrounding Mt. Gox's collapse, the entity chose to receive an early payout. As part of the arrangement, the Mt. Gox Investment Fund is set to receive 90% of what can be collected, with a ratio of approximately 70% Bitcoin (BTC) and 30% cash, according to an anonymous source. 

The deadline for the Japanese platform’s creditors to register the payment method under which they desire to receive claims is on April 6.

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