Mt. Gox creditors dismiss rumors of massive Bitcoin dump

Published at: Aug. 29, 2022

As rumors about an upcoming Bitcoin (BTC) dump float on Twitter, Mt. Gox creditors took to Twitter to say that these are all false, with one highlighting that the defunct exchange’s repayment system is still not live yet. 

In a Twitter thread, Eric Wall introduced himself as a Mt. Gox creditor and confirmed that there would not be a 137,000 BTC dump, countering rumors floating around on social media. According to Wall, the exchange has not yet completed the infrastructure needed to commence the repayment.

In addition, Wall also said that at the moment, people are still unable to register where to send the Bitcoin and Bitcoin Cash (BCH) payments. The creditor also believes that payments should occur in various installments, dismissing the fears that thousands of Bitcoin will be sold all at once, dumping the crypto’s price.

Wall also noted that the crypto exchange has not yet provided a timeline on when it will proceed with its repayment process. Following this, the creditor also argued that even if the BTC were released, he would rather buy than sell because of the current market conditions.

Eight Global CEO Michaël van de Poppe also highlighted that the distribution will be delayed. He tweeted:

BREAKING:Mt. Gox will not be releasing the #Bitcoin, and will delay the distribution, once again. The entire crypto space was stressing out heavily on this, but unwarranted.

— Michaël van de Poppe (@CryptoMichNL) August 28, 2022

Marshall Hayner, another Mt. Gox creditor, also confirmed that they are not close to receiving their BTC. Hayner also assured the community that many people who will be getting their repayments from the exchange do not intend to sell their Bitcoin. 

Related: Bitcoin risks worst August since 2015 as hodlers brace for ‘Septembear’

In July, Nobuaki Kobayashi, the appointed rehabilitation trustee in the Mt. Gox rehabilitation plan, confirmed that the exchange is preparing to pay back its creditors. In the official document released, the exchange noted that the account holders will have the option to receive payments in BTC or BCH. The rehabilitation plan was first approved in 2021. However, from the 850,000 BTC owed, the exchange only has 150,000 BTC to pay its creditors.

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