Bitcoin Dips to $66.3K as Mt.Gox Moves $2.85B in BTC Day After Test Transaction

Bitcoin Mt Gox

Journalist

Tanzeel Akhtar

Journalist

Tanzeel Akhtar

About Author

Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

Author Profile

Share

Copied

Last updated:

July 23, 2024 02:13 EDT

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Mt. Gox,

the Japanese crypto exchange that collapsed in 2014, transferred 42,587 Bitcoin, estitmated at $2.85 billion, to an unknown wallet on Tuesday.

The move comes a day after the exchange executed test transactions as Mt. Gox is preparing to repay its creditors.

Following the move bitcoin price dipped below $66,300 down 1.84%.

Mt. Gox, the defunct crypto exchange, made an announcement earlier this month on its website that it had started making repayments to “some” of the creditors adding others would have to “wait a while” but has since removed the post.

The repayment process, facilitated through the Bitstamp exchange, involves distributing over $9.4 billion worth of Bitcoin and Bitcoin Cash to approximately 127,000 creditors.

So far, the crypto exchange Kraken has confirmed the receipt of funds from Mt. Gox Trustee marking a significant milestone in the long-awaited distribution process to creditors. Kraken will begin distributing the funds later this month and early August.

In an email sent to affected users, Kraken confirmed the commencement of the distribution process. The email stated, “We have successfully received creditor funds (BTC and BCH) from the Mt. Gox Trustee.”

Mt. Gox Collapse Triggered Years of Legal Proceedings

The repayments are being made after a decade since the exchange collapsed. The collapse of Mt. Gox triggered years of legal proceedings and efforts to recover the lost assets.

In 2018, approximately 200,000 Bitcoins were recovered, initiating a lengthy rehabilitation process under the oversight of a court-appointed trustee. Creditors have since been awaiting compensation, with multiple delays frustrating the process.

This latest distribution aims to compensate the users who lost their funds during the collapse. The exact details of the repayment plan, including the proportion of assets to be distributed and the timeline for completion, are closely watched by the crypto community.

Last month, Mt. Gox on transferred Bitcoin worth $2.7 billion to a new wallet address. It marked the exchange’s first significant transaction following several smaller test transactions.