The victims of the MtGox case who lost nearly 142 thousand BTC will receive compensation starting March 10, 2023. This latest news has shocked the global crypto scene, because it has the potential to continue to depress Bitcoin prices after so far this year it had increased by more than 40 percent. How is the case?

The MtGox case in Japan is the biggest case in the history of global cryptocurrency trading. Of the 850 thousand BTC that disappeared in 2014, only about 200 thousand BTC were saved and only about 142 thousand BTC (70 percent) are now in the process of being fully returned to the victims.

On January 6, 2023, the intermediary for this case (called the trustee), namely Nobuaki Kobayashi, a lawyer in Japan, stated that the process of transferring compensation funds would be carried out after March 10, 2023.

“We will start checking the registration data of MtGox creditors. After that, we will make payments as soon as March 10, 2023 (Japan time),” wrote Nobuaki Kobayashi in the letter.

Of course this process is gradual and victims are given a choice, whether to receive the funds in plain money or in Bitcoin (BTC).

The amount of 200 thousand BTC that big is clearly no joke. In 2014, when the hack occurred, it was valued at around US$450 million. At the current BTC/USD price, US$22,480 is equivalent to IDR 69,092,573,240,000.

Should BTC Investors Worry?

Earlier, UBS market strategists said that fears of further collapse in the price of BTC on a 142,000 bitcoin (BTC) offset were a bit exaggerated.

Previously, Bitcoin News said full payment compensation was planned for around September 2023.

“The most important thing is, firstly, whether to take a lump sum payment or wait for further processing and recovery of additional assets, and secondly, receive funds in fiat or crypto,” explain UBS strategists James Malcom and Ivan Kachkovski.

The MtGox Case is Excited Until Now, 650 Thousand BTC Is Still A Mystery

MtGox was originally a crypto exchange founded in Japan in 2010. At that time, MtGox was the largest crypto exchange in the world with 70 percent of Bitcoin trading on the platform.

In 2014, MtGox was hacked and lost around 850,000 Bitcoin worth over US$450 million at that time. This incident made MtGox led by Mark Karpeles declare bankruptcy and begin the rehabilitation process in the same year.

In the case of the MtGox hack, approximately 850,000 BTC were lost or stolen from the platform. However, through the compensation process carried out by the trustee, around 200,000 BTC was found and saved, which was then used to pay back the creditors (victims) affected by the incident. Thus, around 650,000 BTC is still unaccounted for and is still a mystery to this day.

The MtGox case has been in the world’s spotlight because it involved a large amount of digital assets and the impact it had on the Bitcoin and other crypto markets. This case also raises many questions regarding regulation and security in cryptocurrency trading.

Apart from that, investors and clients of MtGox also faced many difficulties during the rehabilitation process. Initially, they are expected to receive back a portion of their assets in the form of Bitcoins. However, this process was slow and often opaque, resulting in a lot of criticism and lawsuits.

In the end, after many attempts and negotiations, the final decision was taken to pay out MtGox victims gradually.

The MtGox Case Becomes a Valuable Lesson

The MtGox case has taught the cryptocurrency industry many lessons and demonstrated the importance of strong regulation and strict security in trading crypto assets. Nonetheless, this case remains a clear example of the risks and challenges faced in investing in the crypto world.

The MtGox case also had an impact on public perception of cryptocurrencies. Although there are still concerns and uncertainties regarding crypto trading, the industry continues to grow and attracts investors from all walks of life.

However, the MtGox case also shows the importance of risk management and a thorough understanding of the technical and security aspects of crypto investing. As blockchain technology grows and develops, it is hoped that better regulations and infrastructure will continue to be developed to minimize risks and increase public confidence in cryptocurrency trading.