Bitcoin Takes 8% Hit Due To Mt. Gox Rumors: Here's What Matrixport Is Predicting

Zinger Key Points
  • Creditors to receive base payment and four repayment options for remaining funds.
  • $1.7B in cash and 283,000 Bitcoin to be distributed as part of rehabilitation plan.

Cryptocurrency services provider Matrixport analyzed the potential market impact of the Mt. Gox haul and concluded that it would have a limited effect on Bitcoin's BTC/USD price.

However, investors should still be aware of the eventual distribution of the 850,000 stolen Bitcoin from a hack that occurred in 2014, Coindesk reported.

Also Read: FTX Fallout - Bahamas Goes All-In On Crypto Legislation 

This analysis comes after Bitcoin experienced an 8% decline on Wednesday afternoon due to rumors of transactions involving wallets linked to the defunct cryptocurrency exchange, Mt. Gox.

"Since not all of the stolen BTC could be recovered, only a fraction of the original amount held by creditors will be compensated," Matrixport's head of research Markus Thielen wrote.

Creditors will receive a base payment with four options to receive the remainder of their funds. These include "early lump-sum repayment (where customers can recover 15%-20% of their lost funds), repayment by bank remittance, repayment for a portion of crypto rehabilitation claims in crypto, or repayment through a fund transfer service provider."

The report stated that the deadline for repayments is Sep. 30, with $1.7 billion in cash, 141,000 Bitcoin, and 142,000 Bitcoin cash BCH/USD to be distributed as part of a civil rehabilitation plan.

Despite the Mt. Gox news, Bitcoin was trading at around $29,146.30 at the time of publication.

Next: The Battle For Crypto Market Regulations Heats Up In Congress

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Posted In: CryptocurrencyNewsTop StoriesMarketsCivil rehabilitation plancrypto exchangeMArkus ThielenMatrixportMt. Goxus government
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