Mt Gox Transfers Another $2.47B Worth of Bitcoin as Creditors Confirm Repayment

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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July 24, 2024 01:45 EDT

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Mt Gox on Wednesday transferred 37,477 Bitcoin (worth $2.47b) from a cold wallet to an unknown address, according to Arkham Intelligence.

Additionally, the defunct crypto exchange internally moved 5,106 BTC (valued at $226m) from one cold wallet to another within Mt. Gox. These transfers are likely related to its repayment plan for creditors.

It follows crypto exchange Kraken moving to distribute assets to Mt. Gox creditors on Tuesday, potentially exerting sell pressure on the market.

On Tuesday, Mt.Gox had transferred 42,587 Bitcoin, estitmated at $2.85 billion.

Mt Gox Creditors Receive Funds via Kraken

In a major development for the creditors, Kraken announced last week that it had received $3b worth of funds from the Mt. Gox Trustee. The exchange planned to start distributing the funds within 7 to 14 days.

In an X post on Wednesday, Kraken co-founder Jesse Powell described the day as “glorious” for Mt. Gox creditors as they began receiving funds. “What a long road. Glad to be closing the door on this chapter of crypto,” he said.

Glorious day for the @MtGox creditors. What a long road. Glad to be closing the door on this chapter of crypto. If more lessons had been learned in 2014, people might not have lost so much in 2022. @AyaMiyagotchi now ED of @ethereum and @gronager went on to start @chainalysis! https://t.co/OTVxDOT4LE

— Jesse Powell (@jespow) July 24, 2024

Long-Awaited Mt. Gox Payout of $9B in Crypto Raises Bitcoin Sell-Off Fears

After years of legal wrangling and delays, Mt. Gox creditors are finally getting their hands on nearly $9b worth of Bitcoin and Bitcoin Cash.

This payout comes after Mt. Gox moved a huge amount of cryptocurrency out of storage for the first time in five years in May. It also raised concerns among investors that a fire sale by creditors could dampen the market. The Trustee’s commencement of the payment process has significantly impacted the crypto market.

Bitcoin last traded about 0.3% lower on the day at $65,711, but is up 4% in the last month.