Home Editor's Pick Bitcoin (BTC) Price Dips as Mt. Gox Moves $7 Billion in Funds for First Time in Five Years

Bitcoin (BTC) Price Dips as Mt. Gox Moves $7 Billion in Funds for First Time in Five Years

by

Mt. Gox, a once-prominent Bitcoin exchange that collapsed in 2014 after a hack, has recently made headlines by transferring a substantial amount of Bitcoin to an unknown address. The defunct exchange moved over 107,000 BTC, worth approximately $7 billion, in a series of transactions that took place during the early Asian morning hours on Tuesday, May 28, 2024.

TLDR

Mt. Gox, a defunct Bitcoin exchange, has transferred over 107,000 BTC (worth around $7 billion) to an unknown address.
The transfers were made in multiple transactions, possibly as part of a plan to repay creditors by October 31, 2024.
This is the first movement of assets from Mt. Gox’s cold wallets in over five years.
The market reacted bearishly to the news, with Bitcoin dropping by 1.4% to as low as $67,680.

The transfers were executed in multiple transactions, ranging from $1.2 million to $2.2 billion worth of Bitcoin. This significant movement of funds is believed to be part of Mt. Gox’s plan to repay its creditors before the October 31, 2024 deadline.

The exchange, which once handled 70% of all Bitcoin transactions worldwide, filed for bankruptcy in 2014 after losing hundreds of thousands of Bitcoins in a hack.

Outflows from Mt. Gox addresses continue:

Now a total of 42,829 Bitcoin have moved out from Mt. Gox addresses in the last few hours.

All coins have been transferred to a new address: 1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6 pic.twitter.com/s19TtkMP3i

— Julio Moreno (@jjcmoreno) May 28, 2024

Since then, creditors have been eagerly awaiting the return of their holdings. The repayment process has been delayed due to legal complexities in Japan, but a rehabilitation plan was approved by the Tokyo District Court in 2018. In 2021, 99% of creditors voted in favor of the plan, paving the way for the distribution of the remaining funds.

The recent Bitcoin transfers mark the first time in five years that Mt. Gox has moved assets out of its cold wallets. The market reacted bearishly to the news, with Bitcoin’s price dropping by 1.4% to as low as $67,680, after reaching a high of over $70,000 on Monday.

Despite the dip, some experts believe that the impact on the market may be limited, as many of the Bitcoins are likely to be held by creditors rather than sold on the open market.

Bitcoin maximalists – investors who believe in the long-term value of the cryptocurrency – could help shield the market from significant sell-off effects. These investors are known for their strong conviction in Bitcoin and their willingness to hold onto their assets even during times of market volatility.

As the October 31, 2024 repayment deadline approaches, the crypto community will be closely monitoring the situation.

The distribution of the remaining Mt. Gox funds, which include not only Bitcoin but also Bitcoin Cash (BCH) and Japanese yen, will be a significant event in the history of the cryptocurrency market.

While some uncertainty remains regarding the potential impact on Bitcoin’s price, the resolution of this long-standing issue will likely bring a sense of closure to those affected by the Mt. Gox collapse.

The post Bitcoin (BTC) Price Dips as Mt. Gox Moves $7 Billion in Funds for First Time in Five Years appeared first on Blockonomi.

You may also like