Mt. Gox Moves $9.6B Bitcoin: Are Creditors Finally Being Repaid?
Collapsed cryptocurrency exchange Mt. Gox has recently moved $9.62 billion worth of Bitcoin (BTC) into a new wallet, raising hopes among its creditors. This significant transfer of 141,686 Bitcoin to the wallet “1Jbez” from several cold wallets associated with Mt. Gox marks the first notable on-chain movement of funds in over five years. This movement appears to align with Mt. Gox’s plans to repay creditors by the end of October 2024.
#Bitcoin is holding the bullish flag, despite Mt. Gox transferring a boatload of coins.
Market is rangebound — but will quickly turn fully bullish if we get above $70,000 again.
Mt. Gox, one of the earliest cryptocurrency exchanges, once facilitated over 70% of all trades within the blockchain ecosystem. However, following a major hack in 2011, the exchange collapsed in 2014, resulting in the loss of 850,000 BTC and affecting about 24,000 creditors. Over $9.4 billion worth of Bitcoin is owed to some of Mt. Gox’s 127,000 creditors, who have been waiting for over ten years to regain their funds.
Market Reaction
Following the first batch of Mt. Gox transfers, the price of Bitcoin dipped by 2% on May 28, reaching a daily low below $67,500 before recovering slightly above $68,000. According to Anndy Lian, an intergovernmental blockchain expert, the market reacted with a somewhat bearish sentiment due to expectations of selling pressure from the creditors once they receive their repayments.
Rehabilitation Trustee and Plans for Repayment
Nobuaki Kobayashi, the Mt. Gox rehabilitation trustee, confirmed that the recent Bitcoin consolidation is part of the exchange’s repayment plans. He stated, “The Rehabilitation Trustee is preparing to repay the portion of cryptocurrency rehabilitation claims to which cryptocurrency is allocated.” However, the trustee did not specify when the repayments would start. This repayment plan includes distributing Bitcoin and Bitcoin Cash as cryptocurrencies or selling them for fiat money, depending on the creditors’ choices.
Former CEO Mark Karpeles’ Reassurance
As far as I know everything is fine with MtGox. The trustee is moving coins to a different wallet in preparation of the distribution that will likely happen this year, there is no imminent sale of bitcoins happening.
Former Mt. GoxCEOMark Karpeles reassured creditors that the movement of Bitcoin from Mt. Gox wallets was part of the distribution process. He stated, “As far as I know, everything is fine with MtGox. The trustee is moving coins to a different wallet in preparation for the distribution that will likely happen this year; there is no imminent sale of bitcoins.”
Future Implications for the Cryptocurrency Market
The movement of such a large amount of Bitcoin has sparked various reactions in the market. Julio Moreno, Head of Research at CryptoQuant, indicated that all coins had been transferred to a new address. Alex Thorn, head of research at Galaxy, suggested that most of the transferred Bitcoin is expected to be held by creditors instead of being sold on the open market. Despite this, market participants have shown a bearish response, with Bitcoin shedding 1.4% since the start of Asian trading hours.
The eventual repayment to Mt. Gox creditors is poised to resolve one of the crypto industry’s most pressing, long-standing issues. The ongoing developments will be closely watched as they unfold, potentially impacting the broader cryptocurrency market.
