Mt. Gox, the defunct cryptocurrency exchange, has initiated another transaction as part of its ongoing repayment plan to creditors, this time moving a small amount of Bitcoin (BTC) to Bitstamp, another major exchange participating in the distribution of funds to former Mt. Gox users.
Mt. Gox Trustee Continues Bitcoin Distribution
According to the latest data from Arkham Intel early this morning, wallet addresses associated with Mt. Gox have transferred approximately 0.02 BTC each to eight different deposit addresses. These movements represent a value of approximately $1,400 each at current prices.
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According to Arkham, these are transfers are most likely a precursor to more substantial transferslikely intended as test transactions before final distribution of funds. “THIS MORNING: MT GOX MOVES MONEY. Mt. Gox addresses deposited $1k to 4 separate Bitstamp deposit addresses. Bitstamp is 1 of 5 exchanges partnering with the Mt. Gox Trustee to facilitate repayments by creditors. Mt. Gox currently holds: $6.08 billion in BTC. These transfers likely represent test transactions.”
Mt. Gox, once the world’s leading cryptocurrency exchange, went bankrupt in 2014 after a high-profile hack. Since then, the exchange has been in a lengthy liquidation process, handled by a court-appointed trustee. The trustee is tasked with distributing remaining assets to creditors, a process that has involved multiple exchanges, including Bitstamp, Kraken, Bitbank and SBI VC Trade.
The crypto community remains vigilant regarding these transfers, given their potential impact on Bitcoin’s market price. Daan Crypto Trades, a popular crypto trader on X, comment given“I’m probably going to see a Mt. Gox batch of BTC sent out today. There’s still 90K $BTC ($6B) left in the Mt. Gox Wallets right now. This could drive down the price in the short term if it actually gets to the creditors. When this is all over, that’s great in the long term.”
Last week, Kraken confirmed Received Bitcoin and Bitcoin Cash from Mt. Gox and expected to distribute to customers within 7-14 days. “We have successfully received creditor funds (BTC and BCH) from the Mt. Gox Trustee. While we strive to distribute funds as quickly as possible, please allow 7-14 days for the funds to appear in your account. The amount you will receive has been determined by the Trustee and we will distribute according to their instructions,” Kraken announced.
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The effort is part of a broader strategy that sees exchanges like Kraken, Bitstamp and Bitbank aim to distribute funds to their customers within 90 days of receipt. While the immediate market impact While these distributions remain a concern, the ultimate resolution of Mt. Gox’s lengthy liquidation process is viewed positively in terms of market stability and closure for creditors.
At the time of writing, BTC was trading at $67,620.
Main image created with DALL·E, chart from TradingView.com