The Truth Behind the Mt. Gox Rumors of Dumping 142,000 BTC

Cryptocurrency investors over the weekend have been buzzing with rumors that Mt. Gox is set to release Bitcoin (BTC) to creditors. However, these rumors are not accurate.

What is Mt. Gox?

Mt. Gox was once the largest and most notorious cryptocurrency exchange in history, handling up to 70% of global Bitcoin trading volume at its peak. In 2014, it was reportedly hacked, resulting in the loss of 850,000 BTC, valued at $400 million at the time—a colossal amount even by today's standards. This incident left a lasting stain on Bitcoin's reputation and the broader crypto industry.

However, Japanese authorities, where Mt. Gox was registered, were only able to recover 141,686 BTC, currently worth $2.8 billion. They also hold about 142,000 BCH, valued at $16 million. All these assets are held by a trustee and will be returned to Mt. Gox's users, often referred to as "creditors" by the court.

Given that Bitcoin was valued between $300 and $500 at the time of the hack, the potential return of funds from Mt. Gox has long been considered a "ticking time bomb" for the cryptocurrency market, as BTC's current value is many times higher. It is also likely that the creditors will not retain the coins after receiving them due to the lengthy 8-year legal battle with the exchange.

Are the Mt. Gox BTC Rumors True?

As of August 27, with the cryptocurrency market struggling after dropping below $20,000 for the first time in a month, rumors began circulating that Mt. Gox was about to repay investors, suggesting a new wave of sell pressure on the market.

However, this information is not accurate. According to Coin68, as of the latest update from the trustee in July 2022, Mt. Gox creditors can only access the claims system, review information about the reimbursement process, decide whether to receive the funds in a lump sum or in installments, and choose the mode of payment (crypto or fiat).

Furthermore, the trustee has not announced any specific timeline for the reimbursement and is still awaiting a decision from the Japanese court. The only deadline mentioned for August is related to transferring the claim rights from Mt. Gox to another party.

Many Mt. Gox creditors have also debunked the rumors of an imminent coin release on social media, stating that, aside from the actions permitted by the trustee, they have not yet been able to enter addresses to receive BTC/BCH or received any information about the reimbursement timeline.

This incident is another example of how easily the cryptocurrency market can be swayed by false rumors, creating fear and impacting prices. Investors should remain cautious of unverified information circulating on social media and rely on reputable news sources with concrete evidence.

Some have even used this opportunity to mock the ignorance and gullibility of many crypto investors:

“They’re going to release the Mt. Gox Bitcoin the same week they unlock the post-merge staked ETH. They just want to maximize chaos. 6-12 months away probably. Going to be funny. Don’t trust anyone.”

— Cobie (@cobie) August 27, 2022

Bitcoin briefly dropped to $19,800 in the past 24 hours, the lowest level since July 14, influenced by news of a speech from the Fed Chairman.

1-hour BTC/USDT Chart on Binance as of 12:05 PM, August 28, 2022