Mt Gox transfers over 2 billion dollars worth of Bitcoin to two wallets
Mt. Gox moved billions of dollars' worth of Bitcoin, in part to centralized exchanges, indicating that as the 10-year saga comes to an end, more creditors might get their funds back.
According to data from blockchain analytics company Arkham, the defunct cryptocurrency exchange Mt. Gox moved about 32,371 BTC ($2.19 billion) to unmarked three new wallet addresses on Monday, November 4.
Mt. Gox moves Bitcoin to unmarked wallets
About 30,371 BTC was moved to wallet address “1FG2C…Rveoy” out of the $2.19 billion move, and 2,000 BTC was moved to Mt. Gox cold wallet "1Jbez…LAPs6." Later, the 2,000 BTC was transferred to the "15gNR…a8Aok" wallet, which was not marked.
Onchain data by Spot on Chainn shared in a Nov. 5 X post shows that some of the funds were transferred to centralized cryptocurrency exchanges (CEXs) OKX and B2C2.
Just a few days after the exchange transferred 500 BTC to two unmarked wallets, Monday saw the biggest transfer from Mt. Gox in months. Since the end of September, this was the first action observed from Mt. Gox. Although it's unclear if Monday's transfer is a part of Mt. Gox's future payments to creditors who suffered losses in the bankrupt exchange.
Bitcoin sell pressure risk as Mt.Gox moves $2.2B Bitcoin
About 127,000 Mt. Gox creditors owed more than $9.4 billion in Bitcoin, and they have been waiting more than ten years to get their money back. This poses a serious sell pressure risk to the price of Bitcoin. According to traders, Mt. Gox's repayments are primarily seen as increasing selling pressure on the Bitcoin markets because early investors will receive assets at a significantly higher value than when they first entered the market in 2013, which will encourage them to sell at least some of their holdings.
At the time of publication, Spot on Chain data showed that the wallets linked to Mt. Gox also contained $825 million worth of Bitcoin. Mt. Gox distributed 59,000 Bitcoin to creditors on July 30, fulfilling 41.5% of its total distribution.
According to a July 29 Glassnode report, the Mt. Gox creditors were not selling Bitcoin despite receiving almost $4 billion worth of it.
Background of Mt. Gox Security breach
In its early years, Mt. Gox handled more than 70% of all Bitcoin transactions, making it the leading cryptocurrency exchange in the world. An estimated 740,000 Bitcoin were lost in an exchange hack in early 2014. Of the numerous attacks on the exchange during 2010–2013, the hack was the biggest.
A Tokyo court last year gave the trustees, who have been working on a repayment plan for a number of years, an October 2024 deadline. The repayment deadline was, however, postponed by one year to October 31, 2025, in October.
As of the time of writing, Bitcoin is trading $69,980.90 and up by 3.27% over the past day, according to data from CoinMarketCap.
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