What will investors do with Mt.Gox money?

After a decade of waiting and a 10,000% increase in the price of Bitcoin, creditors of the defunct Japanese BTC exchange Mt. Gox will finally receive their long-awaited payments.

The exchange, which went bankrupt in 2014 after serious hacking attacks, is now preparing to compensate creditors. Over 850,000 BTC were lost as a result of the crash.

Mt.Gox is expected to restore to the victims 127,000 BTC, which equates to nearly $9.5 billion.

One of the plaintiffs, Gregory Green of Illinois, submitted class action lawsuit against the exchange and its former CEO. At the time, Green had $25,000 worth of Bitcoin in his frozen account. With the value of BTC rising from about $600 then to over $60,000 now, Green's lost investment would be worth about $25 million, a 10,000% gain. However, the exact amount he will receive from the payout, which is expected to begin in July, remains uncertain.

John Glover, chief investment officer at the crypto lending firm, noted the unprecedented windfall that creditors are about to receive. He shared:

Many of them will obviously withdraw their money and rejoice in the fact that their assets trapped in the bankruptcy of Mt. Gox, turned out to be the best investment they ever made.

It is understood that the distribution of sums to around 20,000 creditors on the exchange will begin next month. Payments will be a combination of Bitcoin и Bitcoin Cash .

Luke Nolan, an Ethereum analyst at digital asset management firm CoinShares, explained that many creditors prefer to be indemnified with the same type of assets due to tax implications. JPMorgan noted that people are choosing crypto payments either for tax reasons or to not miss out on future price increases.

Glover highlighted strategies for managing capital gains tax, suggesting some creditors may hedge their positions to avoid a large tax bill. Instead of selling their BTC, they could use it as collateral to take out a loan, thus getting rid of it without triggering a tax liability.