Bitgo begins Mt. Gox repayments, moving $2B in Bitcoin, signalling relief for creditors awaiting assets since 2014.
67.7% of Mt. Gox repayments completed, with $3.2B Bitcoin distributed to creditors. Bitgo marks a critical milestone.
Despite challenges, Mt. Gox repayments are near completion. Over $9.4B Bitcoin is owed, with final payouts expected by August's end.
Bitgo, one of the exchanges collaborating with the Trustee of the bankrupt site, made a noteworthy move that may lead to the start of the much anticipated Mt. Gox payouts. Bitgo started a $2 billion Bitcoin (BTC) test transaction. In the process of paying creditors who lost money when the once-dominant bitcoin exchange crashed in 2014, this is a significant turning point.
https://twitter.com/ArkhamIntel/status/1823375642953486636 Bitgo's Role in the Repayment Process
According to Arkham Intelligence, the Bitgo-associated wallet, identified as bc1q26, received 33,105 BTC, valued at approximately $2.19 billion two weeks ago. The current value of this BTC stash stands at $1.97 billion, reflecting recent market fluctuations.
On August 13, Bitgo's wallet executed a small test transaction worth $5.88, signalling the imminent start of repayments to Mt. Gox creditors. Consequently, this move brings hope to the thousands of creditors who have been waiting for nearly a decade to reclaim their assets.
Progress in Fund Distribution
The distribution process has already seen progress, with 67.7% of the repayments completed.17,000 creditors have received distributions of more than $3.2 billion worth of Bitcoin, according to data from CryptoQuant. The price of BTC has held steady and doesn't appear to be disrupted in spite of this substantial dividend.
The completion of Mt. Gox repayments is expected to have a considerable impact on the crypto market. Glassnode's July report highlighted this event as the resolution of a "major market overhang" that has persisted since the exchange's collapse in 2013.
Challenges and Expectations
Although Bitgo has made strides in initiating repayments, challenges remain. Some creditors on Kraken have reported no BTC repayments, while Bitstamp users have faced withdrawal restrictions due to verification steps. Moreover, some creditors on Bitgo have raised concerns about a perceived favourable approach toward institutional beneficiaries.
Despite these issues, the overall progress is noteworthy. The finalization of Mt. Gox repayments is expected by the end of August. This development represents a key milestone in resolving one of the longest-standing difficulties in the cryptocurrency sector, with creditors owed over $9.4 billion worth of Bitcoin.
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