Mt. Gox Moves $2 Billion in Bitcoin to New Address

Coinspeaker
Mt. Gox Moves $2 Billion in Bitcoin to New Address

Defunct crypto exchange Mt. Gox is still in the process of repaying its creditors, who have been waiting for a long time. The company recently transferred over $2 billion worth of bitcoin (BTC), bringing the total amount of funds already disbursed in July to over a billion, a significant milestone on a long road to recovery from the disastrous hack that hit the company in 2014.

On July 30, 2024, data from Arkham Intelligence, a blockchain analytics company, reported a transaction from a Mt. Gox wallet. The transaction sent 33,105 BTC to a new address starting with “bc1q26”, approximately valued at $2.19 billion at the current price. The ownership of this address is still uncertain at this point.

In this transfer, which is just another in a sequence that happened in July, Mt. Gox sent a bitcoin to several designated cryptocurrency exchange providers like Bitbank, Kraken, Bitstamp, and SBI VC Trade. These exchanges will then facilitate the distribution of the funds to Mt. Gox’s creditors. Actually, Bitstamp confirmed last week that they will start crediting Mt. Gox creditors with their recovered assets on July 25th.

According to a July 24 statement from the Mt. Gox trustee, repayments in both Bitcoin and Bitcoin cash (BCH) were made to over 17,000 creditors across three separate distributions on July 5, 16, and 24. This ongoing process aims to compensate those affected by the 2014 hack, which resulted in the loss of at least 850,000 BTC.

While the full impact of these distributions on the bitcoin market is still uncertain, some analysts anticipate potential sell-off pressure from creditors due to the significant price increase of bitcoin since 2014. However, a recent report by Glassnode suggests a different scenario.

Glassnode analysis of on-chain activity linked to the creditors indicates a profile more consistent with long-term holders and investors, potentially mitigating the expected sell-off pressure in the coming weeks.

As of July 31, 2024, the Bitcoin price sits around $66,300, with a slight decrease of 0.77% in the last 24 hours. The continued distribution of funds from Mt. Gox signifies a step towards closure for creditors and a potential turning point for the exchange’s troubled history.

Mt. Gox Moves $2 Billion in Bitcoin to New Address