It is permanently etched in the minds of Bitcoiners.
The exchange was hacked in two separate incidents in 2011 and 2014, losing 1.15 million Bitcoin to nefarious agents.
In the 2014 hack, thieves stole 850k BTC, sending panic in the crypto scene.
Mt. Gox Hack and the Bankruptcy Rehabilitation Plan
A question you may be asking yourself now is how did this happen and why the huge loss? Well, Mt. Gox was one of the most popular exchanges back in the day. By 2013, it was transacting over 70 percent of all Bitcoin trades.
The hack permanently stained crypto and Bitcoin. Until this day, some believe that Bitcoin is buggy and insecure, and the payment system is associated with weak securities that may take years of recourse.
It is now 2020.
Six years after the hack, a trustee – Nobuaki Kobayashi, appointed by Tokyo District Court to draft a bankruptcy rehabilitation plan and reimburse roughly 150k BTC and $630 million reportedly under his control, may in the next few days begin paying back 24k victims.
According to an update on Dec 15, Nobuaki has filed a draft rehabilitation plan that will guide in the reimbursement of Mt. Gox victims.
Once the Tokyo District Court reviews the plan, it shall determine whether to proceed with it or not.
What will happen to Bitcoin Prices
The reimbursement will undoubtedly result in enormous sell pressure for Bitcoin prices. Ultimately, two scenarios may pan out should the court approve of the draft and green lights the rehabilitation plan:
- Victims may immediately cash out their stash as spot rates. Regardless of the percentage of coins sold, the fact that Bitcoin prices are currently hanging precariously while 150k BTC is ready to flood the market will catalyze sellers.
- Some victims to hold on to their assets. This could be another scenario, but irrespective of their decisions, market participants are already skeptical of the uptrend. After over six years, there is a propensity that some may be brave enough to finally take charge of their rightful asset. We reckon that few may decide to HODL after the 2014 scare.
From the BTC/USD daily chart, prices are firm above $19k , inching higher in the last 24 hours noticeably with better trading volumes.
Analysts are now tracking what the Tokyo District Court will say and specifically when the reimbursement will begin.
Any postponement—say the court asks for changes in the draft, may solidify bulls boosting Bitcoin prices in the immediate term.
In this scenario, the BTC/USD price could rally back to 2020 highs of $19.83k (Coinbase data).
Chart Courtesy of Trading View
Disclaimer: Opinions are those of the author, and are not financial advice. Do your research.
Synthetix (SNX), UTrust (UTK), and Holochain (HOT) Price Analysis for Apr 12
Polygon (MATIC), Cosmos (ATOM), and Zilliqa (ZIL) Price Prediction for Apr 9
Is Decentraland (MANA) a Good Investment?
Is Reef Finance (REEF) a Good Investment?
Icon (ICX), DigiByte (DGB), and NULS Price Analysis—Apr 8
Is BTT a Good Investment?
Fantom (FTM) Price Prediction for 2021
Bitcoin Price corrects 8% from $60k as BTC/USD Bulls Target $93k
Aion Price Prediction for 2021
DigiByte Price Prediction for 2021
ICON (ICX) Price Predictions for 2021
Holochain (HOT) Price Prediction For 2021
Learn5 months ago
Is Polkadot (DOT) A Good Investment?
News5 months ago
How Will Bitcoin React if Either Trump or Biden Wins?
Price Analysis5 months ago
Bitcoin Price Prediction: China FUD, Path back to $13k or $20k?
Learn4 months ago
Yearn Finance Explained: A Simplified Guide to YFI
Price Analysis5 months ago
Synthetix (SNX) Price Analysis: Bulls Aiming at $6 after Closing above Last Week’s high
Price Analysis4 months ago
How The “Easiest Bitcoin Short of Our Lives” Turned Sour