Bitcoin Tumbles as Mt. Gox Executes Massive BTC Transfer: How Much

Mt. Gox has executed a massive Bitcoin transaction worth approximately $3.2 billion. This is part of the defunct exchange's long-awaited repayment process to its creditors who owe a total of $9 billion worth of Bitcoin.

Simultaneously, the Mt. Gox wallet sent 5,110.16 BTC to a cold storage address, ending in “1Jbez,” for safekeeping. Later in the day, around 6:30 a.m. UTC, 2,238.87 BTC—approximately $150 million—was moved to Bitstamp. This transaction suggests that Bitstamp might soon begin distributing Bitcoin repayments to affected users.

Repayment Progress and Concerns

The repayment process, which was first outlined in a statement on July 5, is progressing as planned. The trustees have already conducted test transactions, with the first significant test executed on July 22, transferring Bitcoin to Bitstamp's cold wallets.

However, this activity has raised concerns among crypto investors about potential market impacts. The fear is that the release of such a large amount of Bitcoin could exert downward pressure on the cryptocurrency’s price. 

Exchange Distribution and Market Reaction

Bitstamp, another key player in this process, has committed to starting distributions "as soon as possible" rather than waiting for the full 60-day period allocated.

These distributions will benefit over 20,000 former customers of Mt. Gox. Between Kraken and Japanese exchange Bitbank, around 13,000 customers are expected to receive their Bitcoin, with the remaining repayments handled by three other exchanges. Most creditors should see their repayments completed by early August.

Mt. Gox was once the largest Bitcoin exchange globally but was forced to shut down in 2014 after a massive hack. Cybercriminals exploited a vulnerability and stole 850,000 Bitcoin, valued today at over $57 billion. The ongoing repayment process aims to address the losses suffered by users during the collapse of the exchange.