Bitcoin (BTC) and crypto markets are experiencing a significant correction following the news that former crypto exchange, Mt. Gox, plans to distribute approximately $9 billion worth of digital assets. In the past 24 hours, over $313 million in positions have been liquidated, mainly affecting traders who had long positions on BTC and Ethereum (ETH), according to crypto data aggregator Coinglass.

Mt. Gox was once the world’s largest Bitcoin exchange before going bankrupt and losing most of its coins due to theft. However, the exchange managed to recover most of its coins and has been in a lengthy bankruptcy process to repay its former customers. This has caused uncertainty in the market, as the potential sell pressure from Mt. Gox could impact the price of BTC if it were to sell its coins to redeem creditors.

In a recent statement, Mt. Gox announced that repayments of BTC and Bitcoin Cash (BCH) will begin in July. The exchange stated that it has taken the necessary time to ensure safe and reliable repayments to its creditors, including implementing technical measures for secure repayments, complying with financial regulations in each country, and discussing repayment arrangements with cryptocurrency exchanges. Mt. Gox also mentioned that the repayments will be made in the order of the cryptocurrency exchanges with which the Rehabilitation Trustee will complete the necessary exchanges and confirm required information.

Back in May, former Mt. Gox CEO Mark Karpelès clarified that preparations were underway for a distribution that is likely to occur later this year. He assured the public that everything was fine with Mt. Gox and that the trustee was moving coins to a different wallet in preparation for the distribution, emphasizing that there was no imminent sale of bitcoins.

Investors should be aware that the crypto market is experiencing volatility due to the Mt. Gox situation. It is always recommended to conduct thorough research and exercise caution before making high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades should be done at one’s own risk, and any losses incurred are the individual’s responsibility. The Daily Hodl does not provide investment advice or act as an investment advisor.