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The main creditor of Mt. Gox chose to have an advance payment in BTC

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The main creditor of Mt. Gox chose to have an advance payment in BTC

Source: blockchain.news

Mt. Gox’s largest creditor made the decision to get paid in Bitcoin (BTC) sooner rather than later, passing up the opportunity to receive an even bigger sum.

The biggest creditor of the now-defunct cryptocurrency exchange, Mt. Gox Investment Fund, reportedly made the decision to take a chance on a smaller but earlier payout rather than wait for all the legal processes to be resolved. This move allowed the fund to receive its money sooner. This results in the creditor receiving payment in September of this year instead of having to wait for their money for possibly another nine years.

Bloomberg reports that choosing to pay early will result in the creditor receiving 90% of what is owed. Also, the bankruptcy trustee will not be required to sell tokens to obtain fiat money for the payment, since the creditor opted to receive the payment in BTC. Concerns in the market will ease as a result of this news, as token sales of that scale have the potential to have a detrimental effect on the cryptocurrency market.

Other swap creditors have until March 10 to determine whether or not to accept the early repayment in September and expect a higher payment percentage.

Mt. Gox trustee Nobuaki Kobayashi issued a call to action to creditors on January 6 to complete the required actions by the deadline. Kobayashi said in his writing that creditors who did not meet this requirement would not be able to get their money or would be required to submit documentation to the Japan headquarters to obtain payments in Japanese yen.

Mt. Gox was previously the world’s largest cryptocurrency exchange, but it shut down in 2014 when hackers made off with 750,000 bitcoins belonging to the company’s customers and 100,000 bitcoins belonging to the company itself. At the time of the event, the total value of the money was around $473 million. On the other hand, taking into account the state of the market now, its value is around 20,000 million dollars.

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