BTC Dropped to $65,500 as Mt. Gox Creditors Received Funds Via Kraken

BTC saw a 4% decline to $65,500 in value on Tuesday as Kraken sent funds, which constitute repayments, to Mt. Gox creditors. The defunct Mt. Gox, overseen by its bankruptcy estate, has chosen multiple exchanges to ensure prompt reimbursements to those who lost their funds in 2014 when it went bankrupt due to hacks that persisted for two years.

Chosen exchanges, besides the obvious Kraken, include Bitstamp, Bitbank, BitGo, and SBI VC Trade. While Mt. Gox is working on moving funds to all of these exchanges, it has already transferred large volumes to some. Kraken received massive amounts of BTC and Bitcoin Cash (BCH) a few days ago. Now, it has completed repaying those creditors that were allocated to it.

Kraken CEO Dave Ripley said on X, “@krakenfx has successfully distributed #Bitcoin and Bitcoin Cash from the @mtgox estate back to creditors.” He added, “It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds. It was our privilege and it was our duty.”

Ripley also highlighted Mt. Gox’s bankruptcy trustee for facilitating the repayment process, which took over a decade due to legal battles. “While frivolous lawsuits got in the way of earlier payments, we are extremely grateful to the Trustee for keeping the coins safe and #HODLing the vast majority of #BTC all this time.”

Nevertheless, creditors receiving their funds weighed heavy on market sentiments. Since most are expected to sell their coins when they receive them to take profits and reaccess funds locked away for so long, selling pressure exists. That is why BTC took a 4% dive on Tuesday.

BCH saw a 7% decline, leading the losses, since many are also receiving repayments with the coin. Solana (SOL), Ripple (XRP), and Cardano (ADA) witnessed dips in the 4%-5% territory.

Mt. Gox’s anticipated $9 billion reimbursement process is a cause of concern during this bull run. BTC has traded at massive discounts the past few months because of it. Consequently, the entire crypto market witnessed price reductions.