Originally published on: July 23, 2024
In a surprising turn of events, Mt. Gox made significant transactions on July 23, sending over 47,500 Bitcoins valued at nearly $3.2 billion to two undisclosed addresses. This recent move is part of the defunct exchange’s ongoing efforts to return funds to creditors, with over $12 billion already distributed to assisting entities since July 16.
Updated Figures and Current Holdings
According to Arkham Intelligence data, Mount Gox’s Bitcoin holdings have been revised, now standing at approximately 42,744 BTC valued at $2.85 billion, contrary to the outdated information previously indicating 90,344 Bitcoins worth $6.02 billion.
Repayments and Progress
Mt. Gox’s commitment to repay creditors has been evident since its statement on July 5. The exchange has been actively executing repayments, with plans to expedite the process. Recently, the Mt. Gox wallet designated as “Mt. Gox: Cold Wallet (1Jbez)” transferred 5,110 BTC, equivalent to roughly $340 million, to an undisclosed wallet and leading cryptocurrency exchange Bitstamp.
Distribution and Updates
Of the 5,110 BTC transferred, 2,871 BTC worth approximately $191 million were directed to an unknown address, while the remaining funds totaling $149 million landed in Bitstamp’s account. Additionally, a previous transfer of 42,587 BTC valued at $2.85 billion was also dispatched to another undisclosed address.
Moving forward, Mt. Gox commenced preparations to initiate repayments through Bitstamp, as highlighted by on-chain fund movements. It was observed that Mt. Gox addresses carried out small transactions to four distinct Bitstamp deposit addresses, affirming Bitstamp’s collaboration as one of the five exchanges working closely with the Mt. Gox Trustee.
Market Speculations and Reddit Insights
Despite speculations by finance analyst Jacob King suggesting that most creditors would immediately sell their coins upon receipt, a Reddit poll contradicted this assumption. The poll results indicated a differing sentiment among Mt. Gox creditors, with a preference to “hodl” their Bitcoin payouts instead of selling them promptly.
Unprecedented Movements and Repayments
The recent transfer of $3.2 billion in BTC marks a significant milestone in Mt. Gox’s repayments, bringing the total amount distributed to assisting entities to over $12 billion since July 16. This follows a notable event on July 16, where Mt. Gox witnessed outflows of more than 140,000 BTC after a period of inactivity.
With approximately 190,000 BTC moved within a short span of three hours, the momentum of Mt. Gox’s fund outflows has contributed significantly to the ongoing repayments, fulfilling the promise to creditors.
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