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

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As a researcher who has been closely monitoring the crypto market since its inception, I can attest that the recent move by Mt. Gox to transfer over $2 billion worth of bitcoin is undeniably a significant milestone for the once-defunct exchange and its long-suffering creditors. The ongoing process of repayment has been a drawn-out saga, with the 2014 hack causing immense damage and leaving many waiting on the sidelines.

Despite being defunct, Mt. Gox, the crypto exchange, is still working towards repaying its patient creditors who have been waiting for some time now. In a recent development, they transferred approximately $2 billion worth of bitcoin (BTC), adding to the over a billion dollars already distributed in July. This significant milestone marks a step forward on the long journey towards recovery following the catastrophic hack that occurred in 2014.

Mt. Gox Moves $2.19B Bitcoin

On July 30, 2024, Arkham Intelligence – a firm specializing in blockchain analysis – disclosed a transaction originating from a Mt. Gox digital wallet. This transaction transferred 33,105 Bitcoins to a newly created address that begins with “bc1q26”. Given the current market value, this sum is approximately equivalent to $2.19 billion. At present, it remains unclear who holds this address.

In this recent transaction, which is one of several in a series that took place in July, Mount Gox transferred bitcoins to various designated cryptocurrency exchanges such as Bitbank, Kraken, Bitstamp, and SBI VC Trade. These exchanges will subsequently help distribute the funds to Mount Gox’s creditors. Interestingly, Bitstamp announced last week that they would begin crediting Mount Gox creditors with their recovered assets starting from July 25th.

As per a declaration made on July 24, the Mt. Gox trustee has been making repayments to more than 17,000 creditors using both Bitcoin and Bitcoin Cash (BCH) in three separate distributions held on July 5, 16, and 24. This ongoing procedure is designed to reimburse those affected by the 2014 hack, which led to the theft of at least 850,000 BTC.

Market Impact and Creditor Behavior

Even though it’s not yet clear how these distributions will affect the Bitcoin market, certain experts predict that creditors might feel compelled to sell due to the substantial rise in Bitcoin’s price since 2014. On the other hand, a recent study by Glassnode offers an alternative perspective.

According to Glassnode’s analysis, the patterns of on-chain activity connected to creditors seem to align more with those who are long-term holders or investors rather than traders. This could mean less selling pressure is anticipated in the upcoming weeks.

By July 31, 2024, the Bitcoin price hovers approximately at $66,300, marking a minor 0.77% drop over the past day. The ongoing disbursement of funds from Mt. Gox indicates progress towards resolving creditor claims and could serve as a significant milestone in the exchange’s turbulent past.

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2024-07-31 13:21