Mt Gox Ends TwoMonth Quiet Period by Transferring 500 BTC
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Mt Gox Ends TwoMonth Quiet Period by Transferring 500 BTC

A frigid wallet associated with Mt. Gox, the cryptocurrency exchange in Tokyo that almost went bankrupt following a hack in 2014, recently transferred 500 BTC, equivalent to about $35 million on Thursday night, as per information tracked by Arkham Intelligence.

The entity still possesses approximately $3 billion worth of Bitcoin, and the reason for the BTC transfer remains a mystery. Speculation is rife as people speculate about the movement of the BTC.

Data indicates that the entity initiated a transfer of 31.78 BTC to an unknown address starting with “bc1qn2” and sent 468.24 BTC to another address starting with “12cTjQ.” The latter address then divided the funds among other addresses.

The purpose behind these transfers is subject to speculation. It is widely believed that Mt. Gox may be gearing up for another round of repayments. The wallet had made multiple BTC transfers earlier this year as part of its repayment plan.

In May 2024, Mt. Gox transferred a substantial amount of BTC to a new wallet in preparation for the repayment process, marking its first on-chain activity in over five years. Following this move, in July, Mt. Gox Trustees confirmed the commencement of the decade-long repayment process.

The entity stated that it would distribute Bitcoin (BTC) and Bitcoin Cash (BCH) to creditors through designated cryptocurrency exchanges such as Bitbank, SBI VC Trade, Kraken, BitGo, and Bitstamp.

Approximately $9 billion is owed to around 127,000 creditors, and 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 confirmation by the trustees, repayments have been processed through several exchanges. Kraken, Bitstamp, and Bitbank have reportedly received funds from Mt. Gox so far, with customers of these exchanges confirming the receipt of their shares.

Apart from repayment considerations, the recent transfer could indicate a potential liquidation of BTC. As of Oct. 31, the Mt. Gox wallet still holds 44,905 BTC, valued at over $3 billion.

Although a sudden liquidation of a large amount of BTC could have an impact, the current BTC holdings of Mt. Gox may not significantly affect the Bitcoin or cryptocurrency market overall.

Mt. Gox has extended its repayment deadline to October 31, 2025, from the previous target of October 31, 2024, according to a recent filing. This extension implies that the process of returning funds to creditors may take more time.

Many creditors are yet to complete the necessary procedures to receive their repayments, and some have faced issues during the process. The BTC has been locked up for years, and holders are eager to gain access to their assets.

Analysts had predicted that the release of approximately 141,000 BTC could lead to significant selling pressure as creditors looked to capitalize on their holdings. However, the anticipated sell-off may have occurred recently when Bitcoin surged to $73,000.

According to CoinGecko data, Bitcoin was trading at around $68,800, showing a nearly 5% decline over the past 24 hours. This price correction followed Bitcoin’s flirtation with its previous all-time high of $73,000 earlier in the week.

It remains unclear whether the recent price drop is linked to Mt. Gox’s customers cashing in on the Bitcoin price rally. Previous reports had suggested a 10% decline in Bitcoin’s value in the weeks following the start of repayments.

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