What is Mt. Gox?
Mt. Gox, whose headquarters were located in the special region of Shibuya, in the city of Tokyo, Japan, was launched in 2010, and came to control around 70% of all transactions made with the bitcoin (BTC). Four years after its launch, it established itself as one of the largest bitcoin exchanges in the world.
But in February 2014, the company ran into trouble and suspended cryptocurrency trading, stating that more than 850,000 bitcoins had been hacked from its accounts. A sum that at that time represented an average of about 470 million dollars. Therefore, later in April, Mt Gox was forced to start the liquidation process.
Years of litigation later, more than 135,000 bitcoins have been recovered, which will shortly be paid to creditors in the form of dollars or BTC, according to the administrator’s announcement. “If a large part of the creditors decide to receive payment in fiat currency, there could be more selling pressure for the main digital asset and the asset class in general,” Julius Baer warns.
“Higher-than-expected US inflation in June could point to a persistently negative macroeconomic environment for cryptocurrencies, which, coupled with market-specific factors such as the Mt. Gox case, argues against a quick and sharp rebound in the short term”, they warn.
Given that at the time of the exploitation each Bitcoin token was worth less than 5% of its current value, this announcement by the administrator has raised fears that a large part of the creditors may decide to be paid in real currency instead of cryptocurrencies. , trying to obtain a substantial capital gain. The fears are that it will lead to the release of an overwhelming amount of bitcoins and promote greater pressure to sell the main digital asset, at a time that is already complicated.
Source: Ambito
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