Negosyante News

November 5, 2024 2:41 pm

Mt. Gox Transfers $855 Million in Bitcoin to Unidentified Wallet, Retains $2.7B in BTC

Mt. Gox, the defunct cryptocurrency exchange, recently transferred over $855 million worth of Bitcoin to unidentified wallet addresses, as revealed by data from Arkham Intelligence.

The data highlighted two major transactions. The first transaction, worth $74 million, was directed to a Mt. Gox cold storage wallet. The second, more substantial transaction of $784.2 million, was sent to an unknown wallet address. Notably, these funds have not been moved further since the initial transfer.

Context of Transfers and Ongoing Rehabilitation

Mt. Gox has been actively engaged in returning funds to its creditors as part of a legal rehabilitation process following its collapse in February 2014. The recent transfer activities are seen as part of this ongoing process.

Bitgo, a digital asset custody firm, has also been playing a crucial role in managing Mt. Gox’s assets for the creditors. Following a two-week period of inactivity, a Bitgo-managed Mt. Gox wallet containing 33,105 Bitcoin performed a test transaction last week, signaling that preparations for the final payout stages are underway. Bitgo is the last of five platforms assisting the trustee in distributing the remaining assets to creditors.

Total Distributions and Market Impact

To date, Mt. Gox has distributed a total of $5.77 billion in Bitcoin to various exchanges. Creditors who held $1,000 in Bitcoin at the time of Mt. Gox’s collapse would now see their holdings valued at over $110,000 due to these distributions.

Despite some market participants expecting a sell-off triggered by the release of these funds, the Bitcoin market has remained stable. No significant price decline has been observed, and Bitcoin has actually seen a slight uptick, trading up 0.6% at around $59,403 as of Wednesday.

These movements are significant for both creditors and the cryptocurrency market, marking the near completion of the long-awaited Mt. Gox asset distribution process.

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