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The bankrupt MtGox crypto exchange has clarified the payment terms in bitcoins and BCH

Bits.media / 05.07.2024 / 13:17
The bankrupt MtGox crypto exchange has clarified the payment terms in bitcoins and BCH
The trustee of the MtGox cryptocurrency exchange, which went bankrupt in 2014, began to repay payments to creditors in BTC and BCH through partner crypto exchanges, specifying the terms and conditions for the affected depositors to receive. The letter from the top manager to the clients is at the disposal of the Bits.media editorial office.

Nobuaki Kobayashi announced that the exchange has already started making partial payments based on a self-rehabilitation plan. However, some creditors will have to wait up to three months, depending on which trading platforms they filed claims against.

Kobayashi's letter to clients states that each authorized exchange is required to add the required amount of BTC and BCH to the lender's account balance (or transfer the required amount of these crypto assets to a wallet linked to the account) within the specified period after receiving BTC and BCH from the trustee. 

The American Kraken exchange, for example, has 90 days to process payments. And payments via Bitstamp can take as little as 60 days. Payments with BitGo must be completed within 20 days. SBI VC Trade and Bitbank will complete payments within 14 days.

Those creditors who meet certain conditions will be able to receive compensation. Recipients must confirm their accounts and enter into an agreement to receive funds through an agent with those crypto exchanges through which payments will be made. These agency agreements are listed in the online application system in the MtGox system. The appeal to depositors also states that they will not be able to receive a refund in BTC or BCH if the account is disabled or blocked.

Earlier, MtGox transferred 47,228.7 BTC (about $2.71 billion) to its separate wallet, and then began transferring crypto assets from there, including 1,545 BTC ($85 million) to the hot wallet of the Bitbank crypto exchange.

Analysts at JPMorgan investment bank are confident that lenders will start massively selling off the bitcoins they receive. However, Alex Thorn, head of research at Galaxy Research, believes that users will keep their unlocked crypto assets.

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