A cold wallet linked to Mt. Gox, the Tokyo-based cryptocurrency exchange that faced bankruptcy after a 2014 hack, just moved 500 BTC,...
A cold wallet linked to Mt. Gox, the Tokyo-based cryptocurrency exchange that faced bankruptcy after a 2014 hack, just moved 500 BTC, worth around $35 million on Thursday night, according to data tracked by Arkham Intelligence.
The entity still holds around $3 billion worth of Bitcoin. No one really knows why the BTC are on the move. With people wondering why the BTC is moving, speculation is hot.
Data shows that the entity initiated a 31.78 BTC transfer to the unknown address starting with “bc1qn2” and sent 468.24 BTC to another address starting with “12cTjQ.” The latter address then distributed portions of the funds to other addresses.
People Wonder
The purpose of these transfers remains speculation. It’s widely believed that Mt. Gox might be taking a step toward another repayment round. The wallet made multiple BTC transfers earlier this year as part of the entity’s repayment plan.
In May 2024, Mt. Gox transferred a huge amount of BTC to a new wallet as part of preparations for the repayment process, marking its first on-chain activity in over five years. Following the move, in July, Mt. Gox Trustees confirmed that the decade-long repayment process had started.
The entity said it would distribute Bitcoin (BTC) and Bitcoin Cash (BCH) to creditors through designated cryptocurrency exchanges, including Bitbank, SBI VC Trade, Kraken, BitGo, and Bitstamp.
The estimated reimbursement is around $9 billion owed to around 127,000 creditors. The repayments will be made gradually, with priority given to exchanges that have completed the necessary confirmations and account verifications for their users.
Following the trustees’ confirmation, repayments have been processed through a number of exchanges. So far, Kraken, Bitstamp, and Bitbank have reportedly received Mt. Gox’s funds. Several customers of these exchanges also confirmed that they got their part.
Apart from repayment theory, the latest transfer could signal a potential BTC liquidation. As of Oct. 31, the Mt. Gox wallet still holds 44,905 BTC, valued at over $3 billion.
Compared to previous months when its BTC holdings tripled, even the potential liquidation scenario may not have a profound impact on the Bitcoin market or the overall cryptocurrency market.
However, if a large amount of BTC is suddenly sold, there could be a sudden effect. Mt. Gox’s remaining BTC is intended for future compensation payments to affected investors.
Mt. Gox Extends Repayment Deadline to 2025
Mt. Gox has extended its repayment deadline to October 31, 2025, from the previous target of October 31, 2024, according to a recent filing. The process of returning funds to creditors, therefore, may take additional time.
The extension comes as many creditors have yet to complete the required procedures for receiving their repayments, while others have encountered issues during the process. The BTC has been locked up for years, and holders want access to their assets.
“Many rehabilitation creditors still have not received their repayments because they have not completed the necessary procedures for receiving repayments. Additionally, a considerable number of rehabilitation creditors have not received their repayments due to various reasons, such as issues arising during the repayment process,” Mt. Gox stated.
Analysts predicted that the release of approximately 141,000 BTC would lead to substantial selling pressure as creditors sought to capitalize on their holdings. However, there is a possibility that the anticipated sell-off might just have come recently when Bitcoin surged to $73,000.
According to CoinGecko data, Bitcoin was trading at around $68,800, down almost 5% over the past 24 hours. The price correction came shortly after BTC revisited the $73,000 mark earlier this week, flirting with its previous all-time high.
Still, it’s unclear whether the recent price decline is linked to Mt. Gox’s customers cashed in on Bitcoin’s price rally. Previous reports suggested a 10% decline in Bitcoin’s value over the weeks following the commencement of repayments.
The post Mt. Gox Breaks 2-Month Silence, Moves 500 BTC appeared first on Blockonomi.
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