Mt. Gox Begins Repayments in Bitcoin and Bitcoin Cash

The defunct crypto exchange was once the world's top crypto exchange, handling over 70% of all bitcoin (BTC) transactions in its early years.

Defunct crypto exchange Mt. Gox has begun repaying its customers in bitcoin (BTC) and bitcoin cash (BCH).

The exchange announced on Friday that it has started making the repayments, which were initially expected to begin in July. The repayments will be made in both BTC and BCH, with the proportions determined by the user's crypto holdings at the time of the exchange's closure.

"Today, we commenced the civil rehabilitation procedure to repay our creditors," Mt. Gox said in a statement. "We will continue to work on the procedure diligently and responsibly."

Mt. Gox was once the world's top crypto exchange, handling over 70% of all BTC transactions in its early years. However, the exchange went bankrupt after a hack in early 2014 that resulted in the loss of an estimated 740,000 BTC.

The news of the repayments added selling pressure on BTC and the larger crypto market after Mt. Gox announced last month its intention to begin repayments in July.

"Mt. Gox moved 47,228 BTC, signaling the start of their repayment process, which has caused some market fear due to the large potential sell-off,” a recent analysis by crypto exchange Blockware Solutions noted. “However, it's worth noting that despite these concerns, the long-term impact may be less severe as the market gradually absorbs the selling pressure, according to Willy Chuang, COO of crypto exchange WOO X.

“This ultimately depends on the rate at which the coins are sold and the market conditions at the time. If the selling is done slowly and the market remains strong, then the impact may be minimal."

Bitcoin plunged to $54,000 earlier during the day, its lowest level in five months. The freefall led to over $580 million in bullish bets being liquidated.

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