Bitcoin
This is why Mt. Gox’s $5 billion Bitcoin move matters
Defunct cryptocurrency exchange Mt. Gox initiated a transaction involving more than 75,000 Bitcoin (BTC), valued at approximately $5 billion. This marks the first move by these funds in more than five years, causing ripples across crypto markets.
Recent developments regarding Mt. Gox have attracted considerable attention, not only due to the magnitude of the funds involved, but also due to the potential impacts on crypto markets.
The creditors of Mt. Will Gox continue to hold Bitcoin?
According to Arkham IntelligenceA portfolio labeled “Mount. Gox” transferred BTC to a new address, 1Jbez. The cryptocurrency exchange transferred BTC in batches of around 2,000 BTC in the last 4 hours.
Despite this substantial transfer, the Mt. Gox wallet retains BTC assets worth around $9.3 billion.
See more information: Who owns the most Bitcoin in 2024?
Gox wallet balance. Source: Arkham
This transaction comes before the October 31 deadline by which Mt. Gox plans to repay its creditors. The liquidation plan includes 142,000 BTC, 143,000 Bitcoin Cash (BCH)and 69 billion Japanese yen.
The refund process follows the TOkyo District Court Approval of a rehabilitation petition. In 2021, 99% of creditors voted in favor of the rehabilitation plan.
The crypto community speculates that this significant transfer could trigger a market sell-off due to prolonged anticipation surrounding Mt. Gox Creditor Refunds. The concern is that a substantial portion of these transferred assets could be sold on the open market.
However, not all industry leaders are pessimistic. Alex Thorn, head of research at Galaxy Digital, believes that creditors will continue to hold Bitcoin after receiving it from Mt.
“Mt Gox BTC moved in the last hour, likely the start of distributions to creditors. Personally, I expect most of BTC to be controlled, but I can’t say the same for BCH,” Thorn he said.
The market reacted quickly to this news. The value of Bitcoin is down nearly 4% from the previous day’s high of $70,600, now trading at approximately $67,800. Similarly, Bitcoin Cash has seen a drop of around 7% from its peak of $503.7, currently trading at around $468.
See more information: Top Crypto Bankruptcies: What You Need to Know
Founded in 2010, Mt. Gox has managed 70% of all Bitcoin transactions worldwide. However, a massive cyberattack in 2014 severely impacted its operation, resulting in the loss of approximately 850,000 BTC of customer and company funds.
Although 200,000 BTC was later recovered, legal battles in Japan delayed refunds to affected parties.
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