Mt. Gox ex-CEO announce plans to repay creditors

TL; DR Breakdown

• Mt. Gox ex-CEO to repay creditors
• Mt. Gox reserve BTC is now worth $6 billion
• Analysts warn traders of irresponsibility

The former CEO of crypto exchange Mt. Gox, Mark Karpeles, has announced that he plans to redistribute about $6 billion worth of Bitcoin to creditors. This announcement is coming days after the ex-CEO sent about 6,800 BTC to a wallet without known origins. The crypto exchange, which was once the toast of the market, was cut down after hackers drained more than 800,000 BTC from the platform.

Mt. Gox reserve BTC is now worth $6 billion

In an interview with a local news station, Karpeles announced that during the company’s shutdown, the company had about 200,000 BTC in its confines. During the period, the trustees of the investment sold about 50,000 BTC, which was worth a little bit above $600 million.

In his statement, Karpeles mentioned that the remaining BTC has seen a surge in value and is now worth an accumulated value of $6 billion. After he revealed this key piece of information, he mentioned plans to distribute all the funds to their creditors. Some days after the interview, the transfer aforementioned above happened. Although no one knows the owner of the said wallet, the transfer has got tongues wagging over a potential start of distribution to creditors.

Analysts warn traders of irresponsibility

Although it has been eight years since the exchange functioned last, there has been a plan rolled out to compensate all the company’s creditors. This is what most analysts and market participants feel the 6,800 BTC that was transferred should be. Meanwhile, hackers have continued to ramp up their operations, destabilizing the good work that the sector is doing.

Recently, there have also been calls by regulators across countries for stringent punishments for criminals in the crypto sector. After a recent phishing attack, Rare Bears lost $800,000 worth of NFTs to hackers. As earlier reported, an admin account was used to attack after the malicious actor got hold of it. While the sector continues to ramp up against imminent threats and dangers to operations, traders should also endeavor to keep their assets safe.