Mt. Gox was once a major player in the crypto world. Handling over 70% of the total Bitcoin transactions, it held a sizable market share at the time. Until the time they got hacked and lost over 850,000 Bitcoin in 2014.
Recently, Mt. Gox Creditor Eric Wall denied the sudden release of Bitcoin to the affected user base. The announcement that the former exchange has access to that amount of Bitcoin has led to rumors that they will dump them in one go.
Eric Wall, a Mt.Gox Creditor has denied the claims on his personal twitter account. The tweet voiced disdain for the spread of the rumor. Eric also called out AltCoinhub as the spreader of the said rumor.
He also pointed out the current standing of the payout process.
"As it currently stands, you can't even register where (which exchange) you want your BTC or BCH sent yet," said Eric in his tweet. He also explained that the payments will be done in tranches which means that the payout will be done piecemeal.
The payout has already started yesterday with Danny Devan clearing up the situation. He explained that yes, the 147,000 Bitcoin will not be dumped to the customers immediately. The current fear was that Mt. Gox customers would immediately dump their coins.
If that ever happened the bearish Bitcoin market would significantly crash and can set off a massive sell-off. Fortunately, Devan also explained that the payments will be done through months and not within days.
Eric also pointed this out with the earlier mentioned tranched payment. This will dispel current fears that the Bitcoins that will be distributed to their customers won't affect market volatility.
Eric also explained that there is no specific timeline to make speculations or expectations with.
The fear of the 147,000 Bitcoin dump is caused by the recently poor performance of the Bitcoin market. From its peak price back in November of 2021 of 64,000 USD, it dropped to over 20,000 in the past months due to recent events.
The Chinese crackdown on miners and other factors have pushed Bitcoin to its current situation. Crypto trading expert Michaël van de Poppe also called the fear 'unwarranted'. Mt.Gox also gave options to their customers whether they want their payout to be in fiat currency or in Bitcoin cash.
With the rehabilitation plan in full swing, we should expect more news in the coming months regarding the payouts.