According to PANews, a significant Bitcoin transaction was detected on May 28th. Whale Alert, a blockchain monitoring service, reported that 3,999 Bitcoins, equivalent to approximately 277,654,876 US dollars, were transferred from the infamous MtGox exchange to an unidentified wallet. The transaction occurred at 9:41 Beijing time.

The destination of the transferred Bitcoins remains unknown. The MtGox exchange, once the world's largest Bitcoin exchange, has been involved in several controversies and legal issues in the past, including a major hack in 2014 that led to its bankruptcy. This recent large-scale transfer of Bitcoins from MtGox has raised questions and speculation within the cryptocurrency community.

However, the details surrounding this transaction, including the identity of the recipient and the purpose of the transfer, are currently unknown. This story is developing and further updates will be provided as more information becomes available.

UBS, one of the world's largest investment banks, has published a report stating that the upcoming repayments to creditors of Mt. Gox are unlikely to destabilize Bitcoin. The report suggests that early adopters of Bitcoin, who are likely to be among the creditors, will choose to be paid in Bitcoin and hold onto it, rather than selling it immediately.

The rehabilitation plan for Mt. Gox creditors offers several options for repayment, including a choice between an early lump sum or waiting for more asset recoveries. The report notes that the option of receiving fiat repayments would require the exchange to sell BTC to raise cash, potentially putting pressure on Bitcoin's price.

Although 850,000 BTC were lost in the Mt. Gox hack of 2014, the exchange has since recovered 142,000 BTC, along with 143,000 in Bitcoin Cash and 69 billion Japanese yen ($510 million), representing about 20% of the original loss. While the potential for repayments to influence the price of Bitcoin exists, UBS believes that much less Bitcoin will come to market than some have feared, due to the strong conviction of early adopters in the cryptocurrency.

Recent reports suggest that two of the largest creditors, with a combined share of claims of 20%, have opted for the crypto payout, further reducing the potential impact on Bitcoin's price. UBS concludes that while some new supply could still come to market, it is likely to be less concentrated, and this news could be an additional factor in Bitcoin's recent resilience.

Overall, UBS's report suggests that the repayments from the Mt. Gox bankruptcy are unlikely to have a significant impact on Bitcoin's price or stability, as early adopters are likely to hold onto their Bitcoin and remain committed to the crypto currency.

Disclaimer: The information provided in this article is for educational and informational purposes only and should not be considered financial or investment advice. The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency or organization. It is recommended that readers conduct their own research and analysis before making any investment decisions.

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BTC Price

Our experts explained why the market is reacting to rumors about the sale of Bitcoin by the bankrupt Mt.Gox exchange. And how it could actually affect the price of the cryptocurrency.

Bitcoin dropped sharply by 8% on rumors that wallets holding Mt.Gox coins were making transactions. It quickly became clear that the information was caused by a technical error. But this incident clearly demonstrated the market reaction to the possible sale of thousands of coins of the bankrupt exchange.

Mt.Gox was one of the largest cryptocurrency exchanges in the world. It operated from 2010 until it declared bankruptcy in 2014 after a series of hacks. At its peak, Mt.Gox accounted for about 70% of total Bitcoin trading volume. The 2014 hack resulted in 850,000 bitcoins stolen from Mt. Gox, worth $17.8 billion at current exchange rates.

The bankruptcy of the exchange led to a 7.5-year legal battle. Before a solution in the form of a plan to rehabilitate the affected users was developed in 2021. Since not all of the stolen coins could be recovered. They will be compensated only a part of the original amount – about 200 thousand BTC. The deadline for payment is set for September 30. $1.7 billion, 141 thousand BTC and 142 thousand more Bitcoin Cash (BCH) coins will be distributed under the civil recovery plan. Which is designed for 10,000 customers worldwide.

In the afternoon of April 26 bitcoin rate exceeded $30 thousand. However, in the evening the value of the asset began to decline sharply and fell to $27.6 thousand. By the morning of April 27, the price of the asset has recovered to $29 thousand. In the cryptocommunity bitcoin decline was associated with rumors of bitcoin sales Mt.Gox.

However, later analytics platform Arkham Intelligence. which initially sent out such warnings, reported that the data had been misinterpreted.

“Mt. Gox Bitcoins” have been a hot topic for retail traders for years

This is largely due to the fact that trading robots react to headlines of this kind. As the April 26 incident showed, the mere mention of an exchange’s name is enough for the market to react. In this case, even if the assets are not directly related to the wallets where Bitcoins of hacked users are actually stored.

The system of payments is “rather confusing”, and does not provide some kind of one-time payment to all victims. In addition, it may be profitable for the fund manager to delay the process. At the same time making sure that the payment of compensation does not happen quickly and at one time.

Some of the affected users have chosen compensation in cryptocurrency. And the other part of them chose to receive a bank transfer at a rate several times lower than the current market rate. Some chose to get a smaller amount at an early date. And others chose to get a larger amount within a few years, and so on. Thus, it is impossible that the entire mentioned amount of 140 thousand BTC will somehow be sold at one time on the exchange, our experts explain.

Payments to affected users

In February 2014, when Mt.Gox went bankrupt, Bitcoin was trading at about $550. Given the payouts at the current rate, customers could theoretically get their coins back at a high profit. But given that the affected users will receive payouts in installments. How they will use them is a big question. It is not the fact that they will decide to sell them at once. And not to take advantage of the OTC-platforms without affecting the open market.

Fears about selling cryptocurrency confiscated by the U.S. government should be perceived in the same way. Such coins are sold at auctions. And, as a rule, afterwards, they do not go directly to the exchange glass. For the amounts of such an order and there is a market OTC, explains our expert.

The first official buyer of confiscated Bitcoins is investor Tim Draper. In 2015, he managed to win an auction to distribute Bitcoins to Silk Road, the first ever illegal online marketplace. Draper has never disclosed at what rate he got the coins. He is an outspoken supporter of cryptocurrencies and predicts the first cryptocurrency will rise to the $250,000 mark in 2024.

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In the world of cryptocurrency, the name Mt. Gox is one that is often associated with fraud, mismanagement, and bankruptcy. Founded in 2010 by Jed McCaleb, Mt. Gox quickly became the largest Bitcoin exchange in the world, processing over 70% of all Bitcoin transactions at its peak.

However, the exchange’s reputation took a serious hit in 2013 when it suffered a major hack that saw 850,000 Bitcoins, worth around $450 million at the time, stolen from its servers. The hack was a huge blow to Mt. Gox and caused widespread panic in the cryptocurrency community.

In the aftermath of the hack, Mt. Gox claimed that it had lost the Bitcoins due to a bug in the Bitcoin software, but many experts were skeptical of this explanation. The exchange’s CEO, Mark Karpeles, was also accused of mismanaging the company and using customers’ funds to cover his own personal expenses.

As news of the hack spread, users of the exchange began to panic and demand the return of their funds. However, Mt. Gox was unable to comply with these requests due to the sheer scale of the hack and the fact that it had lost control of the majority of its Bitcoin holdings.

In February 2014, Mt. Gox officially filed for bankruptcy protection in Japan, claiming that it had lost 750,000 of its customers’ Bitcoins, as well as 100,000 of its own. The company also revealed that it had debts of around $63.6 million.

The news of Mt. Gox’s bankruptcy sent shockwaves through the cryptocurrency community, with many users left wondering how such a large and supposedly secure exchange could suffer such a catastrophic failure.

In the months and years that followed, there was much speculation and debate about the cause of Mt. Gox’s downfall. Some blamed the hack and others blamed the company’s mismanagement and lack of transparency.

There were also allegations of fraud, with some claiming that Mt. Gox had been insolvent for months before the hack and that its executives had been aware of this fact but had continued to accept deposits from customers.

Despite the numerous investigations and lawsuits that followed, the full story of what happened at Mt. Gox remains unclear. However, it is clear that the hack and subsequent bankruptcy had a major impact on the cryptocurrency industry, leading to increased regulation and a greater focus on security.

In conclusion, the Mt. Gox saga remains one of the most significant events in the history of cryptocurrency. It served as a wake-up call to the industry and highlighted the need for greater security and transparency in the management of digital assets. While the full extent of the company’s mismanagement and alleged fraud may never be known, the lessons learned from the Mt. Gox debacle will undoubtedly shape the future of cryptocurrency for years to come.

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