Mt Gox Creditor Refutes Reports of Major BTC Dump

Mt Gox creditor Eric Wall has dismissed ongoing rumors that the infamous crypto exchange is disbursing BTC. Wall, who functioned as CTO of crypto investment company Arcane Assets, revealed this in a recent Twitter thread.

Rumors of a BTC Dump

Nearly 10 years ago, Mt Gox crumbled following a hack that saw it lose 850,000 Bitcoins. The team later announced that they had shut down the platform’s services and filed for bankruptcy. However, not long after several angry clients kicked off what was the start of a long-running legal debacle. 

Mt Gox has been working since then to compensate victims of the attack. The company announced that it had a rehabilitation plan in the works with rehabilitation trustee Nobuaki Kobayashi overseeing their progress. Over a month ago, Kobayashi verified once more that the company was indeed preparing to repay its creditors. 

An official report had the end of August put down as a time frame for the company to start the initial payments. 

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Following discussions with the Court and in accordance with the Rehabilitation Plan, the Rehabilitation Trustee plans to set the Assignment, etc. Restriction Reference Period from approximately the end of August this year until all or part of the repayments made as initial repayments is completed for safe and secure Repayments,” read the release. 

Hence, in recent times, speculations have begun to fly on social media that Mt Gox is set to pay out 137,000 BTC. Many believed a massive Bitcoin dump would follow worsening the market conditions. The rumors themselves took a toll on BTC’s price as the token dropped under $20k once more before rallying slightly. 

?MT GOX are reportedly releasing 140k BTC tomorrow?

— The Altcoin Hub (@TheAltcoinHub) August 27, 2022

No Distributions in Sight

Fortunately, Mark Wall emerged to make a Twitter post where he first revealed that he was a creditor. Wall reported that the fallen exchange will not be repaying Bitcoins anytime soon. 

MtGox is *NOT* distributing any coins this week, or the next week, or the week after that,” he said. 

Further down Wall noted that ex-customers are still unable to register where they would like to receive their BTC or BCH payments. Creditors may have to note their preferred exchanges, however, Mt Gox is yet to release a list of approved platforms.

Wall explained that the repayment system is not yet online. The previous update from the trustee did not reveal a form of selecting repayment methods. According to the post, there is also currently no official timeline for repayments.

I am a creditor of Mt. Gox and can confirm we are not close to receiving our #Bitcoin. Most people like me also have no intention of selling it. Don’t believe what influencers on Twitter are telling you.

— Marshall ℙ Hayner ⚛️Ⓜ️ (@MarshallHayner) August 28, 2022

Other creditors such as Marshall Hayner chimed in to dismiss the rumors. Hayner also assured crypto users that most creditors did not have plans to sell their BTC once they received it. Indeed Wall mirrored this sentiment explaining that the cryptocurrency’s current prices didn’t make selling a very appealing option.

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The creditor, like others, claims if the rumors even did have any truth to them, he would rather be buying than selling at the moment.