Creditor Mt. Gox top choice to pay early in Bitcoin (BTC), deciding not to wait any longer for bigger payouts.
Mt. Gox Investment Fund, the largest lender of the inactive crypto exchange, has reportedly decided to take a chance by paying less but earlier than waiting for all the legal proceedings to be resolved. This means creditors will be paid in September this year instead of waiting another nine years before they get their funds back.
According to Bloomberg, choosing to pay earlier means that the creditor will take only 90% of what is due and the bankruptcy trustee does not have to sell tokens to acquire fiat funds for payment because the creditor also chooses to pay in BTC. This will ease the market’s concerns that a large token sale could have a negative impact on the BTC market, even affecting the broader crypto market.
Other creditors of the exchange also have until March 10 to decide whether they want to wait for a larger percentage of payments or take payments again in September.
related: Mt Gox creditors deny rumors of huge Bitcoin dump
On January 6, the guardian of Mt. Gox Nobuaki Kobayashi urged creditors to complete the necessary steps before the deadline and wrote that creditors who fail to do so will not be able to receive funds or will have to send documents to the head office in Japan and receive payments in Japanese yen.
Mt Gox was once considered the world’s largest cryptocurrency exchange before it went bankrupt in 2014 after 750,000 BTC of its customers and 100,000 of its own Bitcoins were stolen. When that happened, the fund was only worth about $473 million. However, at current market prices, it is worth about $20 billion.