Over half of MtGox creditors compensated What will be done with this unexpected windfall

Over half of Mt.Gox creditors have been compensated
The long-awaited compensation process for Mt.Gox creditors has begun, with some creditors receiving payments. The handling of this “unexpected windfall” has become a topic of concern for the public.
Over half of the creditors have been compensated, with over 140,000 bitcoins still to be distributed
“After more than ten years, I wasn’t sure if this would really happen, but we finally did it! It has been a long journey, and I’m glad to see that we are finally approaching the goal, with just a little bit left to go…” Former Mt. Gox CEO Mark Karpelès wrote in a post earlier this month.
As of July, Mt. Gox has started compensating creditors in the form of BTC and BCH. However, according to the trustee’s documents, the payment time varies for different cryptocurrency exchanges. For example, Kraken’s payment may take up to 90 days, Bitstamp may take 60 days, BitGo will display the payment within 20 days, and SBI VC Trade and Bitbank will complete the payment within 14 days. Therefore, Mt. Gox creditors may have to wait up to three months to receive their BTC or BCH.
According to a voting survey on Reddit, among these cryptocurrency exchanges, Kraken is the main choice for creditors, receiving 64.7% of the votes from participants.
Currently, some trustees have received compensation funds from creditors. For example, the Japanese cryptocurrency exchange Bitbank, after receiving bitcoin compensation, transferred the bitcoin to creditors within a few hours, without waiting for 14 days. Kraken also recently announced that it has successfully received funds (BTC and BCH) from the Mt. Gox trustees.
Although Kraken will distribute these funds as soon as possible, it is expected to take 7-14 days to credit the funds to the creditors’ accounts. The amount received by creditors will be determined by the trustees, and Kraken will distribute it according to their instructions.
According to a recent notice by the Mt. Gox trustee Nobuaki Kobayashi, as of July 16, the trustee has compensated over 13,000 creditors with BTC and BCH, which is more than half of the previously disclosed 24,000 creditors. Analyst Maartunn from CryptoQuant also revealed in a recent post that 36% of the Mt. Gox bitcoins have been distributed to creditors. As of July 17, the trustee still holds 140,000 BTC, which will be gradually distributed in the future.
For other creditors who have not received compensation, Nobuaki Kobayashi recently reminded them that these creditors need to confirm the validity of their accounts, accept the agreements from the exchanges, complete discussions with the trustees and exchanges, and ensure that the repayment can be safely carried out.


A creditor reflects unauthorized login attempts on their account on Reddit
However, several Mt. Gox creditors have reported a large number of unauthorized login attempts on their accounts recently. They revealed the problems they encountered when logging into the Mt. Gox website on the Mt. Gox creditors’ subreddit “/mtgoxinsolvency” on Reddit. Screenshots showed that their accounts had experienced a large number of unauthorized login attempts.
Some users are worried that this may be a “brute force” attack on Mt. Gox creditors, but others believe it may just be a website malfunction. After the incident, the Mt. Gox website entered maintenance mode. An email stated, “Thank you for your patience. Please come back later to check.”
With the opening of the $9 billion compensation plan for Mt. Gox, the market is also concerned about the influx of a huge amount of bitcoins. However, Ki Young Ju, the founder of CryptoQuant, stated in a post that unlike the forced sale by the German government, Mt. Gox creditors are not forced to sell, so this is not purely seller liquidity.
This distribution will not end the bullish trend, as these bitcoins are expected to react to market sentiment just like the existing supply. Judging from the recent rebound of bitcoin, the Mt. Gox compensation event has not had a significant impact on the bullish trend of bitcoin.
In a Reddit poll on “cash or cryptocurrency payment,” 69.3% of participants chose cryptocurrency payments. Since the price of bitcoin has increased significantly compared to when Mt. Gox went bankrupt, the passive lock-up gain of creditors is considerable. How to handle this compensation is a topic of great concern.
“Will you tell your wife after receiving bitcoin?” someone joked on the Reddit forum. Based on the replies from many creditors, some are still firmly holding, some are concerned about tax issues, and some choose to cash out to improve their lives.
In a poll initiated by a user on “how much of the bitcoin you plan to sell after receiving payment,” 52.1% of participants chose to sell 0%-10%, 10.8% chose to sell 90%-100%, and the remaining choices were to sell 20%-90%.


“The Mt. Gox bankruptcy case has given me some valuable experience, first, never sell bitcoin easily, second, be cautious about storing cryptocurrency assets on exchanges.”
Some creditors hope for greater returns, and some even bluntly state that bitcoin is a currency, not an investment. This sentiment was also reflected in a voting poll, with over half of the users choosing to continue holding bitcoin.
Of course, many creditors choose to “play it safe” and use the funds to purchase houses and cars, among other items. “As the payment gets closer, I’m getting more nervous and hope to buy a house by the beach for vacation as soon as possible.” “I’ve started paying attention to Tesla and waiting for a few years to buy a house”…. Many creditors are also conflicted about the timing of selling. “Trump supports cryptocurrency, would it be better to sell after he is elected as President of the United States?”
For creditors who need to sell assets and pay cryptocurrency taxes, how to pay taxes is a tricky issue and also a significant expense, which is frequently discussed on Reddit.
For example, “I am a resident of Germany, so I don’t need to pay capital gains tax for holding cryptocurrency assets for more than one year. But I may move to a country that requires taxes in the near future. Should I sell my cryptocurrency assets now or continue to hold?” “Can I sell bitcoin in the European Union? It’s been so long that I no longer have evidence of when I received these bitcoins.”
In addition, there have been anxious messages from creditors who have not yet received compensation, asking, “Which exchanges have received funds and which ones still have funds remaining? Can a list be published?”
“When the price of bitcoin reaches $250,000, $500,000, $1 million, will people regret selling early?” someone asked, also wondering how many stories of missed opportunities will arise.