$1.5 billion worth of Bitcoin from Mt. Gox hack might spook crypto markets

Victims of the infamous Mt. Gox hack in 2014 are set to receive a record 150,000 Bitcoin reimbursement in the coming months.

As a brief background, the Japan-based Mt. Gox was once the largest crypto exchange on the planet: It's said to have handled over 80% of all Bitcoin transactions in its early years.

A massive 740,000 Bitcoin hack in 2014 - over 6% of Bitcoin supply at the time - led to the exchange going bankrupt and the start of years of legal cases against former CEO Mark Karpelès and the exchange.

The hacked funds were valued at over $14 billion as per December 2017 prices.

While 200,000 Bitcoin was eventually recovered, the whereabouts of the remaining 650,000 remains a mystery.

As per a document by the Tokyo District Court and a refiled date by the Mt. Gox Rehabilitation Trustee, all Mt.Gox victims are supposed.

The funds were earlier supposed to be returned on July 1, but a court hearing delayed it to an October date after Nobuaki Kobayashi, Mt. Gox's Trustee, submitted a motion demanding another extension for the Bitcoin settlement.

Under the terms, the creditors are set to cumulatively receive over 150,000 Bitcoin.

If one assumes the original purchase costs of around $400 and a 20% recovery rate, each creditor is set to receive an extra $2,000 based on Bitcoin's price growth, as per crypto exchange Bybit.

Although the new date under the Mt.Gox refiling on October 15 may defer any sell-offs, a major sell-side even could be on the cards for Bitcoin and the broader crypto market after the creditors receive funds.