Crypto Has a $3.18 Billion Problem to Contend With on Friday and it Could Get Ugly

Concerns are mounting around an impending $3.18bn release of crypto recovered from the Mt. Gox cyber heist in 2014.

After more than half a decade of waiting by creditors, a Civil Rehabilitation Trial in Tokyo has drawn to a close.

The seven-year-old case began in 2015 in the aftermath of one of the industry’s biggest-ever exchange heists.

It was revealed that over a period of four years, hackers had been able to drip-steal 850,000 Bitcoin (BTC).

The resulting liquidity crisis led to the Tokyo-based Mt. Gox exchange closing trading and filing for bankruptcy.

But with the court cases finally concluding, patient creditors are now expected to receive a repayment of 21% of their original Bitcoin deposits.

With pay-outs scheduled to begin on Friday, March 10 – what could the release of 142,000 BTC mean for the market?

MtGox refund Deadline 10-March-2023. pic.twitter.com/bgTNcfggA6

— Crypto N0oB (@stauseefahmed) January 8, 2023

What Could Mt. Gox Release Mean for Markets?

Markets are on edge as the magnitude of a possible $3bn pay-out hitting the markets sets in.

In face of difficult headwinds from challenged crypto-friendly bank Silvergate – markets have dropped 5% as fear takes hold.

A total of 142,000 BTC (approx. $3.18bn) is set to be released, alongside 143,000 in Bitcoin Cash (BCH) – valued at $17.58m – and a Japanese Yen payout of 69bn ($5bn USD).

A sudden sell-off could send price action off a cliff – driving catastrophic dumps and the BTC price back below $20,000.

This threatens to converge with Ethereum’s upcoming Shanghai upgrade, which will see Ether locked into staking for ETH 2.0 finally released and able to be withdrawn.

The impact depends entirely on the recipients – some of whom may immediately dump their assets onto the market to recoup long-lost capital.

What could hurt you in March

– Regulators / Binance fud
– Silvergate / stablecoin FUD
– MT gox claims soon
– ETH shanghai soon
– Powell speaks twice next week
– March 14th CPI
– March 22nd FOMC

Enjoy trading this

— RunnerXBT (@RunnerXBT) March 3, 2023

Indeed, since the Mt. Gox collapse – Bitcoin has surged in value almost 20,000%.

However, in an effort to calm markets, the Mt. Gox pay-out will be conducted in intervals – with investors set to receive their lost funds in small amounts.

It is hoped this will soften the impact on price action – but Mt. Gox might be the catalyst that turns Silvergate and the SEC moves into a perfect market storm.

Related:

• PancakeSwap Price Prediction – CAKE Trades 59% Above June Cycle Low, Time to Buy This DEX Coin?
• Top Yield Farming Platforms in August 2022
• Best Crypto Loan Sites in 2022

  This article was written for Business 2 Community by Sam Cooling.
Learn how to publish your content on B2C

Join our Telegram channel to stay up to date on breaking news coverage

Add B2C to your Google News Feed

---

Author: Sam Cooling

Follow @crypto_cooling

Sam is a financial journalist with a focus on cryptocurrency market news, based in London - his former publications include Yahoo Finance and Coin Rivet.  
With a Master’s Degree in Development Management from the London School of Economics, Sam has previously worked as a Technology Consultant for The…

View full profile ›

---

More by this author:

• Cardano Price Prediction – ADA Takes Off as NFT and dApps Show Traction, $1 Incoming?
• 3 Reasons Why Crypto Prices Will Keep Flying Regardless of What the Fed Does on Wednesday
• Hong Kong Crypto Global Hub Strategy Attracts a Flood of Interest From Institutions