Bitcoin

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.
On Tuesday, at around 5 a.m. UTC, a Mt. Gox-associated wallet transferred 42,587.49 BTC, valued at around $2.82 billion, to a new address, according to&nbsp;<a style="text-decoration:none" href="https://platform.arkhamintelligence.com/explorer/entity/mt-gox">Arkham Intelligence</a>.&nbsp;
&nbsp;
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.
<h2 dir="ltr" id="span-span-repayment-progress-and-concerns-span-span">Repayment Progress and Concerns</h2>
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.
&nbsp;
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.&nbsp;
&nbsp;
Jacob King, a finance analyst,&nbsp;<a style="text-decoration:none" href="https://x.com/JacobKinge/status/1808948341738516709">expressed</a> concern that up to 99% of the creditors might sell their Bitcoin upon receipt, potentially flooding the market and driving prices down.
&nbsp;
Despite these fears, a recent&nbsp;<a style="text-decoration:none" href="https://bsc.news/post/mt-gox-users-report-surge-in-unauthorized-login-attempts">Reddit poll</a> indicates a more cautious approach among creditors. Around 56% of respondents plan to hold onto their Bitcoin, while only 20% intend to sell.&nbsp;
<h2 dir="ltr" id="span-span-exchange-distribution-and-market-reaction-span-span">Exchange Distribution and Market Reaction</h2>
Attention has also shifted to the role of exchanges in the repayment process. In an email to customers last Wednesday, Kraken, one of the five exchanges&nbsp;<a style="text-decoration:none" href="https://t.me/mtgoxcreditors/87509">chosen</a> to distribute Bitcoin, announced that repayments would come within seven to fourteen days.&nbsp;
&nbsp;
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.
&nbsp;
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.
&nbsp;
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.&nbsp;
&nbsp;
The price of Bitcoin&nbsp;<a style="text-decoration:none" href="https://coinmarketcap.com/currencies/bitcoin/">dropped by 1.2%</a> within hours after the news broke.

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

Table of Contents

BSCN

Other articles published on Jul 25, 2024

Bitgert: Better than BONK – Things You Need to Know

The Rise of Meme Coins: Why $WINNER Could Be the Next Big Thing

Steps on converting Bitcoin to different currencies

Ferrari to Extend Cryptocurrency Payments to Europe by July End

Investors Withdraw $113.3 Million from New Ethereum ETFs in the US

Bitcoin Approaches a Critical Turning Point on July 26th!

Join our free newsletter for daily crypto updates!