Market Times:

London:

New York:

Singapore:

News

Is Mt. Gox’s $1.95B Wallet Commencing Distribution? Here’s What We Know

On-chain data shows that Mt. Gox has initiated a test transaction, possibly in preparation for more creditor repayments.

Avatar image of Mishael Nwani Mishael Nwani•August 13, 2024
bitcoins in bag

Defunct Bitcoin exchange Mt. Gox has sent nearly $6 worth of bitcoin (BTC) from one of its wallets holding $1.95 billion worth of crypto assets to a separate wallet address. The move comes after the platform had commenced the reimbursement of creditors.

While sharing the on-chain data, blockchain analytics platform Arkham Intelligence suggested that the defunct exchange’s fund movement may indicate that the firm is set to “distribute funds to Mt. Gox creditors.”

Mt. Gox Performs Test Transaction

No official comment from the Mt. Gox Trustee suggests that the current fund movement implies that the defunct firm is set to distribute nearly $2 billion worth of assets to creditors. Still, such test transactions are often the first steps toward significant funds movements.

Arkham spotted that the wallet holding the funds was likely a BitGo account, labeled “the 5th and final exchange working with Mt. Gox Trustee.” The digital wallet received 33,105 BTC on July 30th. At the time of the transaction, the assets were worth $2.19 billion. However, bitcoin’s current price of $59,100 brings the portfolio’s valuation to $1.95 billion.

Notably, the wallet holding the funds did not perform any other transactions at the time of writing.

Will Creditors Sell?

It is worth noting that Mt. Gox has commenced repayment to creditors. On-chain data from the analytics platform CryptoQuant shows that the defunct exchange repaid 67.7% of creditors 19 hours ago.

While applying for repayment, most creditors opted for BTC instead of fiat, indicating that many are likely interested in holding their Bitcoin stash when received. This choice calms the tension that offloading billions of dollars worth of crypto assets will crash the market valuation.

Mishael Nwani

Mishael Nwani is an avid crypto enthusiast with nearly four years of experience in the industry. Since 2022, he has covered topics across cryptocurrencies, NFTs, artificial intelligence, and financial markets.