TLDR
Mt. Gox has transferred large amounts of Bitcoin (47,229 BTC and 44,527 BTC) to unknown addresses and cold wallets.
These transfers are worth billions of dollars (around $3 billion each).
The transfers come as Mt. Gox prepares to repay creditors who lost assets in the 2014 hack.
Bitcoin’s price dipped following news of these transfers.
Mt. Gox, the defunct cryptocurrency exchange, has made significant moves with its Bitcoin holdings. Recent data shows that the exchange has transferred large amounts of Bitcoin to unknown addresses and cold wallets.
These transfers have caught the attention of the crypto community and may signal the start of long-awaited repayments to creditors.
According to blockchain data, Mt. Gox moved 47,229 Bitcoin (BTC) worth nearly $3 billion to an unknown wallet address.
This transfer came from the exchange’s cold wallet, which had been inactive for two weeks.
In a separate transaction, 44,527 BTC, also valued at about $2.84 billion, was moved to another wallet labeled as a Mt. Gox cold wallet.
These large transfers are happening as Mt. Gox prepares to repay creditors who lost their assets when the exchange was hacked in 2014.
The trustee overseeing the Mt. Gox case confirmed last month that Bitcoin repayments would begin in July 2024.
Bitstamp, one of the exchanges chosen to help with the distribution, stated that they have 60 days to distribute the tokens but are working to complete the process as quickly as possible.
The news of these transfers had an immediate effect on the Bitcoin market. The price of Bitcoin dropped by 1.4% in an hour after the transfers were noticed, falling from over $65,000 to around $62,968. However, this dip hasn’t erased Bitcoin’s recent gains, as it’s still trading 10% higher than it was a week ago.
Lennix Lai, the Global Chief Commercial Officer at OKX, suggested that many Mt. Gox creditors are long-term Bitcoin supporters who are less likely to sell all their Bitcoin right away. He also pointed out that the German government’s recent sale of Bitcoin might have a more significant impact on the market.
It’s worth noting that Mt. Gox was once the world’s largest Bitcoin exchange, handling about 70% of all Bitcoin trades in 2013. The exchange, which started as a site for trading Magic: The Gathering cards, grew rapidly with the rise of Bitcoin before its collapse in 2014.
The current repayment process is the result of years of legal proceedings and negotiations. While the return of funds to creditors is a positive development for those who lost money, the broader market impact remains to be seen.
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