Mt. Gox Compensation Payouts Commence for Victims of 2014 Hack
What Happened?
Mt. Gox, a defunct Bitcoin exchange, has announced that it will begin distributing compensation to victims of a hack that occurred in 2014. The hack resulted in the theft of around 850,000 Bitcoins, worth approximately $460 million at the time.
Impact of the Hack and its Aftermath
The hack had a significant impact on the Bitcoin market, leading to a sharp decline in its value. Mt. Gox was once the world's largest Bitcoin exchange, handling over 70% of all Bitcoin transactions. The hack not only resulted in the exchange's collapse but also raised concerns about the security of digital currencies.
Pending Payouts
The compensation payouts will begin in the first week of July and will be distributed to creditors who filed rehabilitation claims. The amount of compensation will vary depending on the size of each creditor's claim and the timeline of the rehabilitation process.
Concerns Regarding the Payout
While the compensation payouts are seen as a positive development, there are concerns among some investors about the potential impact on the Bitcoin market. Some experts believe that a large influx of Bitcoin from the payouts could lead to a temporary decline in its value.
Conclusion
The Mt. Gox compensation payouts mark a significant milestone in the aftermath of the 2014 hack. Victims of the hack will finally receive compensation for their losses, while the Bitcoin market braces for the potential impact of a large influx of Bitcoin.
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