Mt. Gox Exchange

Mt. Gox is a cryptocurrency exchange located in Japan.Between 2011 and 2013, the Mt. Gox exchange accounted for over 70% of the entire BTC trading volume, making it the world's largest BTC exchange at that time.

BTC Theft

In February 2014, the Mt. Gox exchange suddenly closed its website, claiming that approximately 850,000 Bitcoins had been lost due to a hacker attack. Numerous exchange users were unable to withdraw their funds, and subsequently, Mt. Gox filed for bankruptcy.

In March 2014, Mt. Gox found 200,000 BTC in a cold wallet, which has been frozen ever since.

Long Compensation Process

From 2014 to 2024, the process of rights protection and compensation has been ongoing. Every year there were rumors of Mt. Gox starting compensation, but it wasn't until this year that definite news came out stating that compensation is set to begin in July.

Compensation Plan and Market Impact

This compensation involves a total of 140,000 BTC.

Since the BTC price was $500 at the time of the theft and is $60,000 today, the compensation process has always been controversial. Currently, there are three main compensation plans:

Compensation in BTC: Compensation will be made according to the number of BTC stolen. Since the creditors' cost was only $500, they may immediately sell the BTC received at $60,000, causing short-term selling pressure in the market.

Compensation in USDT: Compensation will be made according to the current market price of around $60,000. To gather a large amount of USDT for compensation, Mt. Gox would have to sell a significant amount of BTC on the market, which would cause short-term selling pressure.

Compensation in Fiat Currency: Compensation will be made according to the BTC price of $500 at the time of the theft. This would result in a relatively small total compensation amount and would not affect the BTC market.

Regardless of the method, once Mt. Gox begins compensation, it will have a negative psychological impact on the market. However, according to various sources, Mt. Gox will not compensate all at once. This compensation will be linearly unlocked to avoid a significant impact on the market.

Mt.Gox Website：https://www.mtgox.com

Mt.Gox BTC Address：https://token.unlocks.app/events/mtgox